Question 25 The probability distribution for the annual benefit of a project is listed below. Calculate the Expected value (EV) where EV- (Outcome x Probability) Table of Outcomes and Probabilities 7500 7050 5700 O 7055 Question 26 a decision node The evaluation of engineering projects can be very complex, they can be modelled using which of the following: an economic decision tree a chance node an outcome node Question 27 Probability is one of two measures of risk. Identify the other. replacement analysis Outcome 15,000 9000 6000 3000 standard deviation expected value rate of return Probability 0.2 0.3 0.1 0.4

Question 25 The probability distribution for the annual benefit of a project is listed below. Calculate the Expected value (EV) where EV- (Outcome x Probability) Table of Outcomes and Probabilities 7500 7050 5700 O 7055 Question 26 a decision node The evaluation of engineering projects can be very complex, they can be modelled using which of the following: an economic decision tree a chance node an outcome node Question 27 Probability is one of two measures of risk. Identify the other. replacement analysis Outcome 15,000 9000 6000 3000 standard deviation expected value rate of return Probability 0.2 0.3 0.1 0.4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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