Post Utme Unn 2023 Commerce Question 33

Practice objective / multiple choice question 33 from the 2023 Post Utme Unn Commerce examination.

Post Utme Unn 2023 Commerce Objective / Multiple Choice

Question 33 POST_UTME_UNN • 2023 • COMMERCE • objective

A company is considering two investment projects. Project A has a 10% chance of generating ₦1,000,000 in profit, and a 90% chance of generating ₦0 in profit. Project B has a 20% chance of generating ₦500,000 in profit, and a 80% chance of generating ₦0 in profit. Which project has the higher expected value?

Correct Answer A. Project A

B. Project B

C. Both projects have the same expected value

D. Neither project has a positive expected value

Correct Answer

Correct Option:

Project A

This is Post Utme Unn 2023 Commerce Question 33. It is one of the objective questions from the 2023 Post Utme Unn Commerce examination.

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