There is a 30% probability that an office building will be sold after 5 years for $30 million, a 50% probability that it will be sold for $20 million and a 20% probability that it will be sold for $10 million

What is the expected value of the office building in 5 years?
A) $20 million
B) $21 million
C) $30 million
D) $10 million

Answer: B

Business

You might also like to view...

A credit-based score that is highly predictive of future claims cost is an individual's

A) CLUE score. B) insurance score. C) motor vehicle record score. D) underwriting score.

Business

_____ It is always best to evaluate training using all three levels of evaluation

Indicate whether the statement is true or false

Business