If yes and no are equally likely, which alternative has the largest expected monetary value?
A)small
B)Medium
C)med.-large
D)large
E)ex-large

Question

Quizplus · Accepted Answer

The expected monetary value is calculated by multiplying the probability of each outcome by its monetary value and summing these products. If yes and no are equally likely, the alternative with the highest monetary value for the "yes" outcome will have the largest expected monetary value.

If Yes and No Are Equally Likely, Which Alternative Has