CIMA Management Accounting P1 Question # 43 Topic 5 Discussion

CIMA Management Accounting P1 Question # 43 Topic 5 Discussion

P1 Exam Topic 5 Question 43 Discussion:
Question #: 43
Topic #: 5

Which of the following statements about expected value is NOT correct?


A.

It assumes that the decision is repeated a very large number of times.


B.

It draws management attention to the possibility of very high or very low outcomes.


C.

It is the weighted average outcome based on the probability of each outcome.


D.

It represents the distribution of possible outcomes by a single figure.


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