Problem
Your manager asked you to assess the viability of future development projects and select the most promising one. According to estimates, Project A, upon completion, shows a probability of 0.4 to achieve a value of P3 million and a probability of 0.6 to achieve a value of P600,000. Project B shows a probability of 0.3 to be valued at P4 million and a probability of 0.7 to be valued at P300,000 upon completion.
i. How much is the Expected Value for Project A?
ii. How much is the Expected Value for Project B?
iii. What is the most promising project?