Asked by Teguh Daeli on Jun 11, 2024
Verified
If the simplified technology costs $2 million to develop,what is the expected gain from developing the voice activated software
A) $5million
B) $6million
C) $7million
D) $10million
Voice-Activated Software
Computer applications that are controlled through voice commands rather than traditional manual inputs like keyboard or mouse.
Expected Gain
The anticipated amount of profit or loss that could result from an investment, based on the possible outcomes and their likelihoods.
Revenue
The sum of revenue earned from the sales of products or services that form a company's principal business activities.
- Compute anticipated profits or deficits across a range of enterprise and gaming situations.
Verified Answer
KD
Katelyn DeLoyeJun 15, 2024
Final Answer :
B
Explanation :
The expected gain from developing the thought-activated software is:
Expected gain = (Probability of success) x (Revenue if successful) - (Cost)
Expected gain = (0.30) x (50 million) - (10 million)
Expected gain = $5 million
The expected gain from developing the voice-activated software is:
Expected gain = (Probability of success) x (Revenue if successful) - (Cost)
Expected gain = (0.80) x (10 million) - (2 million)
Expected gain = $6 million
Therefore, the best choice is to develop the voice-activated software as it has a higher expected gain.
Expected gain = (Probability of success) x (Revenue if successful) - (Cost)
Expected gain = (0.30) x (50 million) - (10 million)
Expected gain = $5 million
The expected gain from developing the voice-activated software is:
Expected gain = (Probability of success) x (Revenue if successful) - (Cost)
Expected gain = (0.80) x (10 million) - (2 million)
Expected gain = $6 million
Therefore, the best choice is to develop the voice-activated software as it has a higher expected gain.
Learning Objectives
- Compute anticipated profits or deficits across a range of enterprise and gaming situations.