If a decision maker has to make a particular decision only once, expected monetary value is a good indication of the payoff associated with the decision.

Question

Quizplus · Accepted Answer

Expected monetary value is more useful for repeated decisions over time, as it averages out the outcomes. For a one-time decision, it may not accurately reflect the actual payoff due to the variability of possible outcomes.

If a Decision Maker Has to Make a Particular Decision