Help me out with this EMV question please
Submitted by sanathsh on Sun, 01/11/2015 - 17:40
With the introduction of a new technology in your project there is chance of saving 200000 in your project. However it can also lead to a 15% chance of employee attrition the impact of which can be 1200000 What is the EMV of project
a) 30000
b) 40000
c) 20000
d) -10000
Do I calculate 200000*85/100 - 1200000*15/100
or 200000 -1200000*15/1000
Forums:
coolpmp69
Mon, 01/12/2015 - 15:03
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You would calculate as
You would calculate as
200000 * 85/100 - 1200000*15/100
jwhelan
Mon, 01/12/2015 - 15:12
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Not a good EVM question
Where is this test from? I would question the source.
jwhelan
Mon, 01/12/2015 - 15:14
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sorry
didn't have my coffe yet.
sanathsh
Fri, 01/16/2015 - 05:00
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Answer
As per the source it is
200000 -1200000*15/1000
I am guessing because it says "there is a chance you could save 200000", so the EMV has already been calculated.?
babai
Fri, 01/23/2015 - 19:28
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there is chance of saving
there is chance of saving 200000...
Very nice. What is the probability? 100%?