Asked by Sufyaan Shaikh on Sep 24, 2024
Verified
What is the expected revenue from developing the simplified software?
A) $4million
B) $6million
C) $8million
D) $10million
Voice-Activated
Describes technology that allows devices to be controlled or operated through voice commands, typically involving a virtual assistant.
Expected Revenue
The anticipated amount of money a company expects to receive from its activities over a period, based on forecasted sales volumes and selling prices.
- Execute the application of expected value in everyday examples, such as games at carnivals and making decisions in software creation.
Verified Answer
SG
Shweta Gupta2 days ago
Final Answer :
C
Explanation :
To find the expected revenue of developing the simplified software, we use the formula:
Expected revenue = probability of success * revenue
= 0.8 * $10million
= $8million
To determine the best choice, we need to calculate the expected value of each option:
Expected value of complicated technology = (0.3 * $50million) - $10million = $5million
Expected value of simple technology = (0.8 * $10million) - $2million = $6million
Therefore, the best choice is to develop the simple voice-activated software, as it has the higher expected value of $6million.
Expected revenue = probability of success * revenue
= 0.8 * $10million
= $8million
To determine the best choice, we need to calculate the expected value of each option:
Expected value of complicated technology = (0.3 * $50million) - $10million = $5million
Expected value of simple technology = (0.8 * $10million) - $2million = $6million
Therefore, the best choice is to develop the simple voice-activated software, as it has the higher expected value of $6million.
Learning Objectives
- Execute the application of expected value in everyday examples, such as games at carnivals and making decisions in software creation.