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Mathematics, 15.12.2019 09:31 nmoareah
Aconstruction company plans to invest in a building project. there is a 25% chance that the company will lose $40,000, a 35% chance of a break even, and a 40% chance of a $30,000 profit. based on this, what should the company do?
a)
the expected value is $2,000, so the company should proceed with the project.
b)
the expected value is $22,000, so the company should proceed with the project.
c)
the expected value is - $2,000, so the company should not proceed with the project.
d)
the expected value is $-22,000, so the company should not proceed with the project.
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