A company has a project that has three potential outcomes Outcome A, with a 40 probability, which generates a profit of $50,000 Outcome B, with a 30 probability, which generates a profit of $100,000 Outcome C, with a 30 probability, which generates a loss of $25,000 Calculate the expected profit of...

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A company has a project that has three potential outcomes: Outcome A, with a 40% probability, which

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A company has a project that has three potential outcomes:

Outcome A, with a 40% probability, which generates a profit of $50,000
Outcome B, with a 30% probability, which generates a profit of $100,000
Outcome C, with a 30% probability, which generates a loss of $25,000

Calculate the expected profit of the project and its standard deviation.

(20 marks)

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Project Management Achieving Competitive Advantage

ISBN: 978-0133798074

4th edition

Authors: Jeffrey K. Pinto

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Posted Date: Mar 16, 2023 03:38 AM

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A company has a project that has three potential outcomes: Outcome A, with a 40% probability, which

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Project Management Achieving Competitive Advantage

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