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Expected Value
- The weighted average of payoffs or values resulting from all the possible outcomes.
- An Example
- Success -- stock price increase from $30 to $40/share
- Failure -- stock price decrease from $30 to $20/share
An economy has only one member Robinson Crusoe. Robinson allocates his time between fishing and collecting fruits. One hour spent finishing yields 4 fish. One hour spent collecting
data of past 20 years regarding price, wage, employment, productivity, investment, profit or loss.
Q. What is Benefits transfer? The process of transferring benefit estimates from past valuation studies to the present study, in order to reduce appraisal costs. The validity
Explanation
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