What is the EMV for Option 2 in the following decision table?
A)50
B)100
C)170
D)200
E)350

Question

What is the EMV for Option 2 in the following decision table? 
A)50 
B)100 
C)170 
D)200 
E)350

Quizplus · Accepted Answer

Option 2 with a limit of $5,000 has the highest value for both the claim amount and deductible ranges in the decision table. The EMV for this option can be calculated as follows:

EMV = (0.4 x ($10,000 - $5,000)) - $100 = $1,500 - $100 = $1,400

Therefore, the best choice is Option 2 with a limit of $5,000, as it has the highest expected monetary value.

What Is the EMV for Option 2 in the Following