Expected monetary value (EMV)is:
A) the average or expected value of the decision if you knew what would happen ahead of time
B) the weighted average of possible monetary values, weighted by their probabilities
C) the average or expected value of the information if it was completely accurate
D) the amount that you would lose by not picking the best alternative

Question

Expected monetary value (EMV)is:
A) the average or expected value of the decision if you knew what would happen ahead of time 
B) the weighted average of possible monetary values, weighted by their probabilities 
C) the average or expected value of the information if it was completely accurate 
D) the amount that you would lose by not picking the best alternative

Quizplus · Accepted Answer

Expected monetary value (EMV) is the weighted average of possible monetary values, weighted by their probabilities. This means that it takes into account not only the value of each possible outcome but also the likelihood of that outcome occurring. Therefore, the best choice would be based on the alternative that has the highest expected monetary value.

Expected Monetary Value (EMV)is