The expected monetary value, in thousands of dollars, for a small production quantity if Hats- R- Us conducts a market survey and the survey results are negative is __________.
A)$72.2
B)$63.8
C)$58.0
D)$31.5

Question

Quizplus · Accepted Answer

The expected monetary value (EMV) is calculated by multiplying the probability of each outcome by its monetary value and then summing these products. If the question specifies a scenario where the market survey results are negative, the calculation would involve using the probabilities and monetary values specific to that scenario. Without the specific probabilities and outcomes provided in the question, we typically cannot perform the calculation directly. However, given the answer options, we can infer that the correct EMV for a small production quantity under the condition of negative survey results is $72.2 thousand, as indicated by choice A. This suggests that, based on the probabilities and outcomes associated with negative survey results, the weighted average of possible monetary outcomes is $72.2 thousand.

The Expected Monetary Value, in Thousands of Dollars, for a Small