The expected value under certainty is equal to the difference between the expected value under uncertainty and the expected cost of uncertainty.

Question

Quizplus · Accepted Answer

The formula for expected value under certainty is not related to the expected cost of uncertainty. Therefore, this statement is false. The formula for expected value under certainty is simply the average of all possible outcomes, each multiplied by its probability of occurrence.

The Expected Value Under Certainty Is Equal to the Difference