Agile Question 130

[admin]

Management team wants to decide whether to pick up the project or not. Team decided to check the Expected Monetary Value of the project. A project has a 40% chance of $100,000 profit and a 60% of US $100,000 loss. The Expected Monetary Value for the project is:

a. $60,000 loss
b. $40,000 profit
c. $20,000 loss
d. $20,000 profit

[admin]

Correct answer is C.

Expected Monitory Value (EMV) is computed by EMV = Probability × Impact.

EMV = 0.4 × $100,000 = $40,000 – 0.6 × $100,000 = -$20,000

World of Project Management : Mobile App

Jobs : PM Jobs

Pass PMI-ACP in the First Attempt : PMI-ACP Strategy

All PMI-ACP Question & Answers: Question & Answers

Learn Agile Concepts : Agile Concepts

Agile Tips & Tricks : Agile Tips & Tricks

Quiz:
20 Questions Challenge 50 Questions Challenge

Study Groups: Facebook Whatsapp Telegram

[Author]

Posts