What is the EMV for Option 2 in the following decision table?
$$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { States of Nature } } \
\begin{array} { | l | c | c | }
\hline \text { Alternatives } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } \
\hline \mathrm { p } & .3 & .7 \
\hline \text { Option 1 } & 15,000 & 20,000 \
\hline \text { Option 2 } & 10,000 & 30,000 \
\hline
\end{array}$$

A) 10,000
B) 16,000
C) 20,000
D) 24,000
E) 30,000

Question

What is the EMV for Option 2 in the following decision table?
$$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { States of Nature } } \
\begin{array} { | l | c | c | } 
\hline \text { Alternatives } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } \
\hline \mathrm { p } & .3 & .7 \
\hline \text { Option 1 } & 15,000 & 20,000 \
\hline \text { Option 2 } & 10,000 & 30,000 \
\hline
\end{array}$$

A) 10,000
B) 16,000
C) 20,000
D) 24,000
E) 30,000

Quizplus · Accepted Answer

The EMV (Expected Monetary Value) for Option 2 is calculated as follows: (0.3 * 10,000) + (0.7 * 30,000) = 3,000 + 21,000 = 24,000.

What Is the EMV for Option 2 in the Following