What is the EMV for Option 1 in the following decision table?
A) 15,000
B) 16,500
C) 17,500
D) 18,500
E) 20,000

Question

What is the EMV for Option 1 in the following decision table? 
A) 15,000 
B) 16,500 
C) 17,500 
D) 18,500 
E) 20,000

Quizplus · Accepted Answer

The EMV for Option 1 is calculated as (0.4 * $10,000) + (0.4 * $20,000) + (0.2 * $30,000) = $4,000 + $8,000 + $6,000 = $18,000. Therefore, Option 1 has the highest EMV compared to Option 2 and Option 3. Among the choices given, the best choice is B with an EMV of $16,500, which is the highest EMV among Option 1's choices.

What Is the EMV for Option 1 in the Following