Hello Ayat
Hope you are doing great with CMA
Calculating estimated value based on probabilities is similar to matrix (Array) in mathematics or puzzle game we have to solve by using "If" & "Then" analysis
In this question there are (4) probabilities:
- Favorable & Successful
- Favorable & Unsuccessful
- Unfavorable & Successful
- Unfavorable & Unsuccessful
Very important note: We should consider all available probabilities that sum to 100% (Both positive & negative).
For easier understanding I have attached an excel sheet, please review how the calculations have been made by pressing F2 on highlighted cells (Formulas).
Kind regards
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Samer Ahmad, FMVA, SCA
Kuwait
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Original Message:
Sent: 03-08-2020 07:48 AM
From: Ayat Elsawy
Subject: Can explain
Need explain
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Ayat Elsawy
Accountant
Elmontaza
Egypt
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