Which of the following is not true for the expected monetary value of a project?
- For an investment to be considered pursuable, expected value must exceed or at least equal initial value.
- Expected value of a project equals the initial value plus the algebraic sum of the expected values of the risk events.
- Best case means that the full values of all positive conditions are added to the initial value while all negative conditions are ignored.
- Best case and worst case scenarios should be equal.
The correct answer is 4.
Answers A, B, and C are all correct considerations in the expected monetary value approach.
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