Project 1 has the highest expected value of $6,000. Project 2 has the second highest expected value of $9,500. Project 3 has the lowest expected value of -$26,000. Based on expected values, Project 1 would be the best project to select.

1. Initial Question Options Outcome probabilities Outcome +/- Expected Value
$60000 $15000
0.25
0.3
$50000 $15000
Project 1
0.45
$65000 -$29250
What project
should we $750
select?
0.2 $75000 $15000
Project 2
0.4
$35000 $14000
0.4
$70000 -$28000
$1000
$150000 $30000
0.2
Project 3
0.35
$75000 $26250
0.45
$80000 -$36000
$20250

2. Initial Question Options Outcome probabilities Outcome +/- Expected Value
$60000 $12000
0.2
0.4
$50000 $20000
Project 1
0.4
$65000 -$26000
What project
should we $6000
select?
0.15 $75000 $11250
Project 2
0.55
$35000 $19250
0.3
$70000 -$21000
$9500
$150000 $15000
0.1
Project 3
0.2
$75000 $15000
0.7
$80000 -$56000
-$26000