Expected monetary value (EMV)is
A)the average or expected value of the decision if you knew what would happen ahead of time.
B)the weighted average of possible monetary values,weighted by their probabilities.
C)the average or expected value of the information if it was completely accurate.
D)the amount that you would lose by not picking the best alternative.
E)a decision criterion that places an equal amount on all states of nature.

Question

Quizplus · Accepted Answer

Expected Monetary Value (EMV) is calculated as the weighted average of all possible outcomes, where each outcome is weighted by its probability of occurrence. This provides a single metric that summarizes the expected value of a decision, taking into account the different possible scenarios and their likelihoods.

Expected Monetary Value (EMV)is