What is the EMV for Option 1 in the following decision table?
A)10,000
B)18,000
C)20,000
D)22,000
E)30,000

Question

What is the EMV for Option 1 in the following decision table? 
A)10,000 
B)18,000 
C)20,000 
D)22,000 
E)30,000

Quizplus · Accepted Answer

The EMV for Option 1 is (0.4 × 10,000) + (0.2 × 18,000) + (0.3 × 20,000) + (0.1 × 30,000) = 4,000 + 3,600 + 6,000 + 3,000 = 16,600. Therefore, Option 1 with a budget of 20,000 has an expected monetary value of 16,600, which is the highest among all options, making it the best choice.

What Is the EMV for Option 1 in the Following