A Firm Is Considering Two Projects,A and B,with the Following

question 42

Multiple Choice

A firm is considering two projects,A and B,with the following probability distributions for profit. Given the above,what is the expected value of project B in $1,000s) ?

• A)$60
• B)$65
• C)$70
• D)$75
• E)$80

---

Definitions:

Startup

An entrepreneurial venture typically in the early stages of operations, often innovation-driven and aiming to meet a marketplace need by developing a viable business model around a product, service, process, or platform.

Lemon

In economic terms, refers to a product, especially a used car, that is found to be defective only after it has been bought.

Apprenticeship

A system of training a new generation of practitioners of a trade or profession with on-the-job training and often some accompanying study (classroom work and reading).

Entrepreneurs

Entrepreneurs are individuals who create, organize, and lead a business venture, taking on financial risks in the hope of profit, driven by innovation, and operationalizing ideas into marketable products or services.