Question

1. which formula represents the calculation of an expected value?

a. ev = probability + impact
b. ev = probability / impact
c. ev = probability of outcome × impact of outcome
d. ev = probability - impact

Explanation:

The expected value (EV) in probability - related concepts is calculated by multiplying the probability of an outcome by the impact (or value) of that outcome. Options a (addition), b (division), and d (subtraction) do not follow the correct formula for expected value.

Answer:

C. EV = Probability of Outcome × Impact of Outcome