There Is a 30 Percent Chance That a New Product

question 34

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 $100,0What is the expected value of this project?

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