volume_mute
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
volume_mute
Correct Answer
$300,000
Explanation
Calculation: (0.70 x 1,000,000) - 400,000 = 300,000
Reference
go-math-science.com