Project A Project B Project C Project D EUAW Prob. EUAW Prob. EUAW Prob. EUAW Pr
ID: 1091344 • Letter: P
Question
Project A
Project B
Project C
Project D
EUAW
Prob.
EUAW
Prob.
EUAW
Prob.
EUAW
Prob.
$2,000
0.2
$3,000
0.1
-$5,000
0.2
$4,000
0.4
$1,500
0.5
-$2,500
0.4
$6,500
0.5
$2,500
0.3
$3,000
0.3
$3,500
0.5
$1,000
0.3
-$2,000
0.3
Select the most appropriate answer from the choices below. No partial credit. Show all work, no credit if work not shown (not a guessing game).
A. The best alternative is A
B. The best alternative is B
C. The best alternative is C
D. The best alternative is D
E. The best alternative is
Project A
Project B
Project C
Project D
EUAW
Prob.
EUAW
Prob.
EUAW
Prob.
EUAW
Prob.
$2,000
0.2
$3,000
0.1
-$5,000
0.2
$4,000
0.4
$1,500
0.5
-$2,500
0.4
$6,500
0.5
$2,500
0.3
$3,000
0.3
$3,500
0.5
$1,000
0.3
-$2,000
0.3
Explanation / Answer
for project A
expected EUAW = 2000*.2+1500*.5+3000*.3 = $2050
for project B
expected EUAW = 3000*.1-2500*.4+3500*.5 = $1050
for project C
expected EUAW = -5000*.2+6500*.5+1000*.3 = $2550
for project D
expected EUAW = 4000*.4+2500*.3-2000*.3 = $1750
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