Question: Modern Tech is evaluating two projects A and B. The benefits for each alternative, with their respective probability of occurrence, are included in the following
Modern Tech is evaluating two projects A and B. The benefits for each alternative, with their respective probability of occurrence, are included in the following table. Based on the data provided for each alternative, determine which project is the best alternative.
| Project A | Project B | ||||||
| VAUE | Prob. | VAUE | Prob. | ||||
| $2,500 | 0.3 | $3,000 | 0.1 | ||||
| $1,800 | 0.45 | -$2,500 | 0.3 | ||||
| $3,200 | 0.25 | $4,000 | 0.6 | ||||
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