The possible returns and associated probabilities of two independent projects are as follows: It has been decided that both projects are to be launched. Which TWO of the following statements are correct? (Choose two.)
A) The expected value of the total return is $41,500 gain.
B) The probability of the total return being a loss is 0.10.
C) The probability of making a total return of exactly $5,000 gain is 0.02.
D) The probability of the total return being a gain is less than 1.00.
E) The expected value of the total return is $40,000 gain.

Question

The possible returns and associated probabilities of two independent projects are as follows:  It has been decided that both projects are to be launched. Which TWO of the following statements are correct? (Choose two.)
A) The expected value of the total return is $41,500 gain. 
B) The probability of the total return being a loss is 0.10. 
C) The probability of making a total return of exactly $5,000 gain is 0.02. 
D) The probability of the total return being a gain is less than 1.00. 
E) The expected value of the total return is $40,000 gain.

Quizplus · Accepted Answer

The Answer of The possible returns and associated probabilities of two independent projects are as follows:  It has been decided that both projects are to be launched. Which TWO of the following statements are correct? (Choose two.)
A) The expected value of the total return is $41,500 gain. 
B) The probability of the total return being a loss is 0.10. 
C) The probability of making a total return of exactly $5,000 gain is 0.02. 
D) The probability of the total return being a gain is less than 1.00. 
E) The expected value of the total return is $40,000 gain.

The Possible Returns and Associated Probabilities of Two Independent Projects