The expected monetary value (EMV)is the average of the payoffs associated with a particular alternative weighted with the probabilities for each state of nature.

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The expected monetary value (EMV) is indeed calculated by taking the average of all possible outcomes under a particular decision, where each outcome is weighted by its probability of occurrence. This provides a single metric that represents the average expected payoff of the decision, taking into account the various states of nature and their probabilities.

The Expected Monetary Value (EMV)is the Average of the Payoffs