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Challenge: Calculate the expected value of a business scenario

Challenge: Calculate the expected value of a business scenario - Microsoft Excel Tutorial

From the course: Learning Excel: Data Analysis

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Challenge: Calculate the expected value of a business scenario

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(upbeat music) - [Instructor] One of the tasks that we reviewed in this chapter was determining expected value for a project given a range of scenarios. In this movie, I wanted to introduce the problem that I'll ask you to work through. And then in the next movie, I'll show you how I would solve it. The idea is that you have four scenarios with probabilities given in column B and the value assigned to that scenario based on that particular outcome in column C. Your job is to find the expected value for each one of the scenarios, and then the total expected value for the project, and then make a judgment on whether or not you would want to go forward. So go ahead, give it a try. And in the next movie, I will show you how I might solve it.

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