The most common method for solving a risk analysis problem is to select the alternative with the
A)smallest expected value.
B)greatest expected value.
C)mean expected value.
D)median expected value.

Question

Quizplus · Accepted Answer

The most common method for solving a risk analysis problem is to select the alternative with the greatest expected value. This is because the expected value represents the average outcome of a decision, taking into account the probabilities of different outcomes. Choosing the alternative with the highest expected value maximizes the potential payoff while minimizing the risk.

The Most Common Method for Solving a Risk Analysis Problem