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If a Project Holds an 80 Per Cent Probability of High

question 30

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If a project holds an 80 per cent probability of high demand and a 20 per cent probability of low demand, then the expected value of the net present value of the two different demand assumptions would give us a weighted average net present value for the project. Such an analysis is called


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Uncertain

The state of being unsure or having doubts about something, often due to a lack of information.

Predictable

The characteristic of an event, outcome, or behavior that can be anticipated or expected based on certain patterns or prior knowledge.

Lead User

An innovative customer who modifies or uses products in a new way, leading trends and offering valuable insights for product development.

Netnography

A qualitative research methodology that adapts ethnographic techniques to study cultures and communities online.

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