Calculation for qualitative risk analysis?
Hi, does anyone know the calculation for following question?
question;
You are conducting a quantitative risk analysis on your project in relation to potential profits earned from a new product. The estimated profit is $350,000. There is a 20% chance that it will exceed expectations at a value of $180,000, there is a 50% chance it will meet expectations at a value of $40,000, and a 30% chance it will not meet expectations at a value of ($140,000). What is the expected monetary value of the risk?
Answer is $14,000.
