TABLE 17-2
The following payoff matrix is given in dollars.

$\quad $ $\quad $ $\quad $ $\quad $ $\text {Action }$
$\begin{array} { c c c }
\text { Event }& A & B \
\hline1 & 400 & 700 \
2 & 200 & 500
\end{array}$
Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5.
-Referring to Table 17-2, what is the EMV for Action A?
A) $600
B) $700
C) $300
D) $550

Question

TABLE 17-2
The following payoff matrix is given in dollars.

$\quad $ $\quad $ $\quad $ $\quad $ $\text {Action }$
$\begin{array} { c c c } 
\text { Event }& A  & B \
\hline1 & 400 & 700 \
2 & 200 & 500
\end{array}$
Suppose the probability of Event 1 is 0.5 and Event 2 is 0.5.
-Referring to Table 17-2, what is the EMV for Action A?
A) $600
B) $700
C) $300
D) $550

Quizplus · Accepted Answer

The EMV (Expected Monetary Value) for Action A is calculated as follows: EMV = (Probability of Event 1 * Payoff for Event 1) + (Probability of Event 2 * Payoff for Event 2) = (0.5 * 400) + (0.5 * 200) = 200 + 100 = $300.

TABLE 17-2 the Following Payoff Matrix Is Given in Dollars \quad

TABLE 17-2
the Following Payoff Matrix Is Given in Dollars $\quad$