medium · Project Management Professional adaptive
Ironwood Grid is evaluating two options for a grid expansion. Option A has a 60% probability of a 400,000 gain and a 40% probability of a 100,000 loss. Option B has a 50% probability of a 300,000 gain and a 50% probability of a 50,000 gain.
Which option has the higher Expected Monetary Value (EMV)?
- Option B, because its EMV is 350,000.
- Option B, because it has no possibility of a loss and an EMV of 175,000.
- Option A, because its EMV is 240,000.
- Option A, because its EMV is 200,000.
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