To apply a new policy to 2024, Chesax must estimate an amount at the end of 2024. According to the file prepared at the time (estimation method provided by the case): a 60 % chance of an amount of 100,000 and 40 % of an amount of 40,000. The outcome known in 2025 is 30,000. What amount should be used for 2024?
- Probability of the high scenario
- 60 %
- Amount of the high scenario
- 100,000
- Probability of the low scenario
- 40 %
- Amount of the low scenario
- 40,000
- Outcome known in 2025
- 30,000