Probabilistic budgeting

Its really just expected values. The idea is to to prepare the budget for different outcomes and then calculate the expected value using the probabilities of the different outcomes. (Expected values are in the syllabus, but the term 'probabilistic budgeting' won't be used in the exam.)

It doesn't make any difference (and never will!). ((600 x 0.6) - (200 x 0.4)) - 100 gives exactly the same answer as (500 x 0.6) - (300 x 0.4) :-)

You are welcome :-)