When a provision is needed that involves a number of outcomes, the provision is calculated using the expected value of expenditure. The expected value of expenditure is the total expenditure of：
A、Each possible outcome
B、Each possible outcome weighted according to the probability of each outcome happening
C、Each possible outcome divided by the number of outcomes
D、Each possible outcome multiplied by the number of outcomes
A、Each possible outcome
B、Each possible outcome weighted according to the probability of each outcome happening
C、Each possible outcome divided by the number of outcomes
D、Each possible outcome multiplied by the number of outcomes
【参考答案及解析】
The expected value approach to calculating a provision takes each possible outcome (ie theamount of money that will need to be paid under each circumstance) and weights it according to the probability of that outcome happening. The total amount of each weighted value is the provision
The expected value approach to calculating a provision takes each possible outcome (ie theamount of money that will need to be paid under each circumstance) and weights it according to the probability of that outcome happening. The total amount of each weighted value is the provision