7 ms·
I'm nitpicking, but the expected value for a project with a 50/50 chance of either (a) making $3m or (b) losing $1m is $1m. Not $2m.
by xtreme 3y ago
I'm nitpicking, but the expected value for a project with a 50/50 chance of either (a) making $3m or (b) losing $1m is $1m. Not $2m.
- zamfi 3y agoUgh, you are totally right. I originally had making $5m but then changed it and not the EV :facepalm:
- BossingAround 3y agoJust wondering, is it because 3 * 0.5 + (-1) * 0.5 = 1.5 - 0.5 = $1M?
- zamfi 3y agoyes