There Is a 30 Percent Chance That a New Product

question 53

Multiple Choice

There is a 30 percent chance that a new product development project will result in sales of $500,000 and a 70 percent chance that the project will result in sales of $100,000. What is the expected value of this project?

• A) $220,000
• B) $240,000
• C) $300,000
• D) $320,000
• E) $340,000

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Definitions:

Prehistory

The period of time before recorded history, studied through archaeology, which includes the study of ancient cultures and civilizations.

Industrial Revolution

A period of major industrialization during the late 18th and early 19th centuries that transformed mainly agrarian, rural societies in Europe and America into industrialized, urban ones.

Middle Ages

A historical period in Europe lasting from the 5th to the late 15th century, marked by the fall of the Western Roman Empire and preceding the early modern era.

Superego

In Freudian psychoanalysis, the part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.