Using expected value (EV) with decision trees is totally appropriate for situations where one outcome could lead to an immense loss for the company.

Question

Quizplus · Accepted Answer

Expected Value (EV) does not account for the variability or risk associated with outcomes, especially when one outcome could lead to an immense loss. It averages out the outcomes, potentially underestimating the impact of highly negative scenarios.

Using Expected Value (EV) with Decision Trees Is Totally Appropriate