A company wants to implement a new AI-driven chatbot. The 'Potential Value' is estimated at 1M in savings over two years. The cost to implement is 400,000. However, there is a 30% chance that the technology will not be adopted by customers, resulting in zero savings. What is the 'Expected Value' of this strategy?https://go-math-science.com/computing/software-engineering/requirements-engineering/cbap-certification-practice-exams/cbap-practice-exam-5/a-company-wants-to-implement-a-new-ai-driven-chatbot-the-potential-value-is-estimated-at-1m-in-savings-over-two-years-the-cost-to-implement-is-400-000-however-there-is-a-30-chance-that-the-technology-will-not-be-adopted-by-customers-resulting-in-zerohttps://go-math-science.com/@@site-logo/logo-new.png
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A company wants to implement a new AI-driven chatbot. The 'Potential Value' is estimated at 1M in savings over two years. The cost to implement is 400,000. However, there is a 30% chance that the technology will not be adopted by customers, resulting in zero savings. What is the 'Expected Value' of this strategy?
publish date: 2026/04/21 23:01:56.386739 UTC
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Correct Answer
$300,000
Explanation
Calculation: (0.70 x 1,000,000) - 400,000 = 300,000
