Asked by elizabeth lugones on Apr 23, 2024
Verified
What is meant by the expected monetary value (EMV)of a decision alternative?
Decision Alternative
An available option or course of action that can be taken in a decision-making process.
Expected Monetary Value
A calculation used in decision-making to determine the average outcome when the future includes scenarios that may or may not happen.
- Master the essentials and calculation techniques for expected monetary value (EMV) and expected opportunity loss (EOL).
Verified Answer
GP
gianicola perronMay 02, 2024
Final Answer :
The EMV of a decision alternative is the sum of the products of the payoffs (profit or loss)and the state of nature probabilities.
Learning Objectives
- Master the essentials and calculation techniques for expected monetary value (EMV) and expected opportunity loss (EOL).
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