Expected monetary value (EMV) is: a. the average or expected value of the decisi

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

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

Explanation / Answer

b

EMV is the weighted average of monetary values weighted by their probability

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