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NEW QUESTION: 1
If a business venture has a 60-percent chance to earn $2 million and a 20-percent chance to lose $1.5 million, what is the expected monetary value of the venture?
A. $300,000
B. $500,000
C. $900,000
D. -$50,000
Answer: C
Explanation:
EMV = ($2M x 60%) + (-$1.5M x 20%) = ($1.2M) + (-$300,000) = $900,000 [Planning] Frame 2002, 192 PMI@, PMBOK@ Guide, 2013, 339
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