Annual savings due to an energy efficiency project have a most likely value of $30,000. The high
estimate of $40,000 has a probability of 0.2, and the low estimate of $20,000 has a probability of 0.30.
What is the expected value for the annual savings?
The high estimate of has a probability of 0.2, and the low estimate of has a probability of 0.35.
Thus, the estimate of has a probability of;
.
The expected value for the annual savings is the weighted average of the annual savings.
Hence, the expected value for the annual savings ;
the expected value for the annual savings is .
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