risk and uncertaintyForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › risk and uncertaintyThis topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total) AuthorPosts March 15, 2017 at 5:02 pm #378374 adarsh1997ParticipantTopics: 638Replies: 282☆☆☆☆Dear sir,I do have watched your lectures concerning risk and uncertainty but still have some issues.In example 1, concerning expected values, I do have understood the arithmetic but not the logic. What’s the logic behind, for example, “2900 x 0.2”?Thanks. March 16, 2017 at 8:02 am #378425 John MoffatKeymasterTopics: 56Replies: 53850☆☆☆☆☆Suppose there is a 0.1 probability of getting 100, and a 0.9 probability of getting 200.It means that out of 10 times, then 1 will give 100 and 9 will give 200.So the total for 10 times is (1×100) + (9×200) = 1900. Therefore the average each time is 1900/10 = 190(Doing (0.1 x 100) + (0.9 x 200) = 190, is doing the same thing)AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)The topic ‘risk and uncertainty’ is closed to new replies.