What is the EMV for Option 2 in the following decision table?
A) 10,000
B) 16,000
C) 20,000
D) 24,000
E) 30,000

Question

What is the EMV for Option 2 in the following decision table? 
A) 10,000 
B) 16,000 
C) 20,000 
D) 24,000 
E) 30,000

Quizplus · Accepted Answer

The EMV (Expected Monetary Value) for each option can be calculated by multiplying each possible outcome with their respective probability, and then summing up the products. 
For Option 2, the EMV is:
(0.2 * 10,000) + (0.2 * 16,000) + (0.3 * 20,000) + (0.1 * 24,000) + (0.2 * 30,000) = 2,000 + 3,200 + 6,000 + 2,400 + 6,000 = 24,600
Therefore, the best choice would be Option 2 with an EMV of 24,600.

What Is the EMV for Option 2 in the Following