ASQ
CSSBB · Question #173
Perform a risk analysis to determine the expected profit or (loss) from a project which has four possible disjoint outcomes: Outcome A shows a profit of $340,000 and has a probability of 0.25…
The correct answer is C. $154,000. See the full explanation below for the reasoning.
Define Phase
Question
Perform a risk analysis to determine the expected profit or (loss) from a project which has four possible disjoint outcomes: Outcome A shows a profit of $340,000 and has a probability of 0.25 Outcome B shows a profit of $120,000 and has a probability of 0.40 Outcome C shows a loss of $40,000 and has a probability of 0.10 Outcome D shows a profit of $100,000 and has a probability of 0.25
Options
- A$130,000
- B$520,000
- C$154,000
- D($168,000)
- Enone of the above
How the community answered
(25 responses)- A8% (2)
- B4% (1)
- C76% (19)
- D12% (3)
Topics
#risk analysis#expected value#probability#financial analysis
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