ABSTRACT
There are so many analytical techniques and tools, some of which are very complex and require a lot of effort to perform and others which are very industry specific. Expected value is a probability-weighted average of all outcomes. The decision can be made by comparing the expected value of different scenarios. Expected value is calculated by multiplying each possible outcome by its probability of occurrence and then summing the results. Union leaders probably were so overwhelmed by their membership's negative emotions towards management that they acted rashly without first performing an analysis that should have included an expected value for their final decision. Intentionally or unintentionally overlooking expected value analysis is very common in project management. Large construction projects may have to go through an environmental assessment, which could be a long and very expensive process that would significantly delay the project and, therefore, increase project cost.
