Asked by Hailee Celeste on Mar 10, 2024

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​What is the expected revenue from developing the complicated software?

A) ​$10million
B) $15million
C) $20million
D) ​$50million

Thought-Activated

Technology or systems that are controlled by the user's thoughts or brain signals, often used in assistive devices and interfaces.

Expected Revenue

The projected amount of money a company anticipates generating from the sales of goods or services over a certain period.

  • Utilize the notion of expected value in real-life contexts, including amusement park games and choices in the development of software.
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Yesenia Venegas

Mar 10, 2024

Final Answer :
B
Explanation :
To calculate the expected revenue, we need to multiply the probability of a successful launch with the revenue generated:
Expected revenue from the complicated software = 0.3 x $50million = $15million
Expected revenue from the simple software = 0.8 x $10million = $8million
Total cost of complicated software = $10million
Total cost of simple software = $2million
Expected profit from complicated software = $15million - $10million = $5million
Expected profit from simple software = $8million - $2million = $6million
Since the expected profit is higher for developing the simple software, it is the best choice.