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PGMP · Question #352
PGMP Question #352: Real Exam Question with Answer & Explanation
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Benefits Management
Question
Your company is evaluating two projects for consideration. Project A has a 40% probability of $69,000 US and a 60% probability of -$10,000 US. Project B has a 60% probability of $56,000 US and a 40% probability of -$15,000 US. Which of the projects would you select based on the greatest expected monetary value?
Options
- AProject A
- BProject B
- CProject A and B are of even value
- DThe expected monetary value is not high enough on either to make a selection
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Topics
#Expected Monetary Value (EMV)#Quantitative Risk Analysis#Project Selection#Financial Modeling