JPSem

I think you've got it.

The total all of the four PROBABILITIES on the right should equal 1 (0.15+0.45+0.24+0.16).

The EPS numbers just illustrate how the company's earnings would be affected by the different interest rate scenarios.

The sum of (prob*EPS) equals the expected EPS.

(0.15*2.60) + (0.45*2.45) + (0.24*2.20) + (0.16*2.00) = E(EPS) = $2.34