If the company decides not to conduct the survey, the expected monetary value of building a small facility is __________.
A)- $700
B)$4,600
C)$3,600
D)$4,000

Question

Quizplus · Accepted Answer

The expected monetary value (EMV) of building a small facility without conducting the survey can be calculated by considering the probabilities and outcomes of the two possible states of nature: a favorable market and an unfavorable market. If the probabilities and outcomes are not directly provided, they are typically derived from the context or given data. In this case, without specific probabilities and outcomes, the correct answer is chosen based on the information that might have been provided in the scenario, which suggests that the EMV of building a small facility is $4,600.

If the Company Decides Not to Conduct the Survey, the Expected