It is similar to a weighted average. For each project multiply the probability and outcome and then sum these measures for each project.

Instruction: The table consists of information about 2 competing investments. Project A Project B Economy Probability Profit Expected Value Profit Expected Value Weak 15.0% $10.00 $25.00 OK 55.0% $30.00 $0.00 Good 20.0% $50.00 $100.00 Excellent 10.0% $70.00 $200.00 100% Part 1 - calculate the expected value for each project. 3 points per answer part 2 - which do you select? part 2 - which do you select? C Why? why? Size it Solve it! Clear it