The easiest way I know is to multiply the divisor by different numbers to see how many times it will go into the dividend. multiplying 486 by 2 or three and seeing which one gets closest.
A small company plans to invest in a new advertising campaign.
There is a 20% chance that the company will lose $5,000 ,
50% chance of a break even, and a 30% chance of a $10,000 profit
So the expected value from the advertisement campaign is calculated as - 20% of 5000 + 0% of 5000 + 30% of 10,000
= -1000 + 0 + 3000
= 2000
The expected value from the advertisement campaign is $2000.
So the Company must go ahead with the campaign.
Answer : Option A
Hope it helps.
Thank you ..!!
The answer would be -10/20 which is simplified to -1/2
