What is the EMV for Option 1 in the following decision table?
$$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { States of Nature } } \
\begin{array} { | l | c | c | }
\hline \text { Alternatives } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } \
\hline \mathrm { p } & .6 & .4 \
\hline \text { Option 1 } & 200 & 300 \
\hline \text { Option } 2 & 50 & 350 \
\hline
\end{array}$$
A) 200
B) 240
C) 250
D) 260
E) 300

Question

What is the EMV for Option 1 in the following decision table?
$$~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~{ \text { States of Nature } } \
\begin{array} { | l | c | c | } 
\hline \text { Alternatives } & \mathrm { S } _ { 1 } & \mathrm {~S} _ { 2 } \
\hline \mathrm { p } & .6 & .4 \
\hline \text { Option 1 } & 200 & 300 \
\hline \text { Option } 2 & 50 & 350 \
\hline
\end{array}$$
A) 200
B) 240
C) 250
D) 260
E) 300

Quizplus · Accepted Answer

The Expected Monetary Value (EMV) for Option 1 is calculated as follows: EMV = (0.6 * 200) + (0.4 * 300) = 120 + 120 = 240.

What Is the EMV for Option 1 in the Following