CEVAP:

In decision making under risk environment, it is possible to assign probabilities to the states of nature. If the decision is made under the risk environment, the payoff table shows the probabilities associated with the states of nature. In this setting, it is possible to calculate the expected monetary value or expected of value (mean value) of each decision alternative. Calculating the expected monetary value are easy. For each decision alternative, payoff value and the associated state of the nature’s probability is multiplied and the total of these multiplications for every state of nature for each row of the payoff table gives us the expected monetary value of the decision alternative.