The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is
A) low (near 0%).
B) high (near 100%).
C) dependent upon the number of alternatives.
D) dependent upon the number of states of nature.
E) 50%.

Question

Quizplus · Accepted Answer

The EMV is an expected value based on probabilities of different outcomes, and it is rare for the actual outcome to match the expected value precisely. Therefore, the likelihood of receiving a payoff precisely equal to the EMV is low.

The Likelihood That a Decision Maker Will Ever Receive a Payoff