Busıness Decısıon Models Deneme Sınavı Sorusu #1400791

Which of the following is false according to the EMV (Expected Monetary Value) criterion?


It is an anticipated value for a given investment at some point in the future.

It is commonly used when comparing alternatives

It is used for maximizing expected loss or minimizing expected profit.

The profit or cost that will arise from each alternative is handled by certain possibilities.

When the decision’s consequences involve only money, we can calculate the Expected Monetary Value (EMV).


Yanıt Açıklaması:

The Expected Value (EV) is an anticipated value for a given investment at some point in the future. In decision making at risk, the expected value criterion is commonly used when comparing alternatives, based on maximizing expected profit or minimizing expected loss. The expected value criterion attempts to find the expected profit maximized or the expected cost minimized. The profit or cost that will arise from each alternative is handled by certain possibilities. When the decision’s consequences involve only money, we can calculate the Expected Monetary Value (EMV). The correct answer is B.

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