If EMV( $a _ { 1 }$ ) = $50 000, EMV( $a _ { 2 }$ ) = $65 000, and EMV( $a _ { 3 }$ ) = $45 000, then EMV* = $160 000.

Question

Quizplus · Accepted Answer

EMV* is the maximum expected monetary value, which is usually calculated by adding the highest EMV of each alternative. However, in this case, the sum of the highest EMV of each alternative is $65,000 + $50,000 + $45,000 = $160,000, not $160,000. Therefore, the statement is false.

If EMV a1a _ { 1 }a1​ ) = $50 000, EMV

If EMV $a _ { 1 }$ ) = $50 000, EMV