If the payoffs are in monetary terms,the expected value of the payoffs is often referred to as ______.
A)expected profit value (EPV)
B)expected loss value (ELV)
C)expected returns value (ERV)
D)expected monetary value (EMV)

Question

Quizplus · Accepted Answer

The expected value of payoffs in monetary terms is referred to as expected monetary value (EMV). This is the sum of the products of each possible payoff and its probability of occurring. It is often used in decision making to determine the most rational choice based on the expected payoff.

If the Payoffs Are in Monetary Terms,the Expected Value of the Payoffs