Expected value from this risk event
Submitted by keane234 on Mon, 08/18/2014 - 19:53
Forums:
Hi, I don't understand why following question's answer is D. Can anyone tell me why it is D or is there any reference I can check?
Question;
Given the information in the following table, what is the expected value from this risk event? Probability Result
.4 -10,000
.3 -7,500
.2 -5,000
.1 +2,500
-10,000.
- 7,500.
+ 2,500.
-7,000.
Answer: D
