Multiple Choice
Simplistic Inc.has a project that costs $600,000.It has a 70% chance of a $1,000,000 payoff and a 30% chance of a $100,000 payoff.What is the expected payoff and the expected profit or loss from the new project?
A) The expected payoff is $730,000,and the expected gain is $130,000.
B) The expected payoff is $700,000,and the expected loss is $100,000.
C) The expected payoff is $600,000,and the expected gain is $0.
D) The expected payoff is $500,000,and the expected loss is $100,000.
Correct Answer:
Verified
Correct Answer:
Verified
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