Question

Calculate the expected Value for Sell software on own unanswered Success Moderate Success Failure Do submitted Probability 0.3 04 Sell Company Form Joint Venture Sell Software on own Answer format: Number Round to 1 decimal places

Answer 1

Answer and Explanation:-

he expected value (EV) is an anticipated value for an investment at some point in the future. In statistics and probability analysis, the expected value is calculated by multiplying each of the possible outcomes by the likelihood each outcome will occur and then summing all of those values.

Expected value for Sell software on own :-

	Success	Moderate Success	Failure
Probability(P)	0.3	0.3	0.4
Self software of own(R)	420	113	100

Expected Value: R₁P_1⁺R2P2+R3P3+.......RnPn

R=Value expectation in a given scenario

P=Probability of Value being achieved in the scenaro

N= No of Scenario.

Expected Value = R₁P_1⁺R2P2+R3P3+.......RnPn

= 0.3*420+0.3*113+0.4*100

= 199.9