Project Management Professional (PMP) Exam Practice – Question1587

If a business venture has a 60-percent chance to earn $2 million and a 20-percent chance to lose $1.5 million, what is the expected monetary value of the venture?


A.
-$50,000
B. $300,000
C. $500,000
D. $900,000

Correct Answer: D

Explanation:

Explanation:
EMV = ($2M 60%) + (-$1.5M 20%) =
($1.2M) + (-$300,000) = $900,000