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(1) Question ID: 1026

If a project has a 60 percent chance of a US $100,000 profit and a 40 percent chance of a US $100,000 loss, the expected monetary value (EMV) for the project is:



A. $20,000 profit

B. $60,000 loss

C. $40,000 loss

D. $100,000 profit

The correct answer is A.



Expected monetary value is calculated by EMV = probability × impact. We need to calculate both positive and negative values and then add them.

0.6 × $100,000 = $60,000

0.4 × ($100,000) = ($40,000)

Expected...
PMP-RMC EMV Questions and answers.
Last document update:
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(1) Question ID: 1026

If a project has a 60 percent chance of a US $100,000 profit and a 40 percent chance of a US $100,000 loss, the expected monetary value (EMV) for the project is:



A. $20,000 profit

B. $60,000 loss

C. $40,000 loss

D. $100,000 profit

The correct answer is A.



Expected monetary value is calculated by EMV = probability × impact. We need to calculate both positive and negative values and then add them.

0.6 × $100,000 = $60,000

0.4 × ($100,000) = ($40,000)

Expected...