The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is:
A) low (near 0%).
B) high (near 100%).
C) dependent upon the number of alternatives.
D) dependent upon the number of states of nature.
E) none of these

Question

Quizplus · Accepted Answer

The EMV represents the expected value of all possible payoffs, and it is unlikely that any one payoff will be exactly equal to this expected value due to the unpredictable nature of future events. This means that the likelihood of receiving a payoff precisely equal to the EMV is low (near 0%).

The Likelihood That a Decision Maker Will Ever Receive a Payoff