The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is:
A)low (near 0%).
B)high (near 100%).
C)dependent upon the number of alternatives.
D)dependent upon the number of states of nature.
E)none of the above

Question

Quizplus · Accepted Answer

The EMV is a weighted average of all possible outcomes, and the likelihood of receiving any one particular outcome is often low. Additionally, there may be unanticipated factors that influence the actual outcome, making it even less likely to receive the exact EMV.

The Likelihood That a Decision Maker Will Ever Receive a Payoff