The expected monetary value criterion (EMV) is the decision-making approach used with the decision environment of:
A) certainty.
B) risk.
C) uncertainty.
D) aversion.
E) neutrality.

Question

Quizplus · Accepted Answer

The expected monetary value criterion (EMV) is used in decision-making under risk, where the outcome probabilities are known but the outcomes themselves are uncertain. Under EMV, decision makers calculate the potential monetary value of each decision option and select the one with the highest expected value.

The Expected Monetary Value Criterion (EMV) Is the Decision-Making Approach