Statistics, Probability, Data Analytics, Decision Making, Knowledgebase Analytics.
surge in market demand is $2,000,000, and if the market demand doesn’t surge, you’ll make a loss of $500,000. So, for the ‘Launch’ path, we have four outcomes: 1️⃣Government announces incentives, and market demand surges. EV1​=P(A)×P(B∣A)×Gain from high demand EV1​=0.6×0.9×$2,000,000 = $1,080,000