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CSQA · Question #404

If there is a 50% probability of a risk occurring and the impact of the occurrence is $40,000 lost of revenue, then what is the expected value of the risk?

The correct answer is A. $20,000. See the full explanation below for the reasoning.

Question

If there is a 50% probability of a risk occurring and the impact of the occurrence is $40,000 lost of revenue, then what is the expected value of the risk?

Options

  • A$20,000
  • B$80,000
  • C$2,000
  • D$800,000

How the community answered

(36 responses)
  • A
    83% (30)
  • B
    8% (3)
  • C
    6% (2)
  • D
    3% (1)

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