Calculating Expected Value Involves

question 81

Multiple Choice

Calculating expected value involves:

• A) estimating how likely different outcomes are, and estimating the financial implications of each outcome.
• B) predicting the most likely outcome and assuming that that event will occur.
• C) assuming the worst outcome will occur and evaluating the financial implication of that outcome.
• D) None of these statements is true.

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Definitions:

Maslow's Hierarchy

A psychological theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy from basic physiological needs to self-actualization.

Management Executive

A Management Executive is a senior-level position responsible for directing, controlling, and overseeing the operations and strategy of an organization or a specific department.

Expectancy

In motivational theory, it’s the belief or anticipation that effort will lead to the successful achievement of a task and result in a desired outcome.

Effort

The amount of physical or mental energy put into a task or activity to achieve a specific outcome or goal.