Question: Firm X is considering a project and its analysts have projected the following outcomes and their probabilities. What is the expected value of the outcomes?

Firm X is considering a project and its analysts have projected the following outcomes and their probabilities. What is the expected value of the outcomes?

Question 40 options:

a)

$8,265

b)

$3,375

c)

$8,633

d)

Cannot be determined. Depends upon which prediction is correct.

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