Question: Firm X is considering a project and its analysts have projected the following outcomes and their probabilities OUTCOME PROBABILITY OF OUTCOME ASSUMPTION $5,900 23% Pessimistic

Firm X is considering a project and its analysts have projected the following outcomes and their probabilities OUTCOME PROBABILITY OF OUTCOME ASSUMPTION

$5,900 23% Pessimistic

$8,500 45% Moderately successful

$12,300 32% Optimistic

What is the expected value of the outcomes?

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