Suppose your job is to estimate the costs of a proposed project. (Please just assume someone else will estimate the benefits and their distribution.) The project has some risks so its exact costs are unknown, but we expect there is a 50% chance it will cost $100 million and a 50% chance it will cost $500 million. If the project’s costs will be spread over 327 million people what will you use as an estimate of the costs? Briefly explain.

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Since the projects involves certain risks by which cost of the project is not ascertainable and the... View the full answer