Question

Expected Monetary Value is the average or expected monetary outcome of a given decision if we know what would happen ahead of time.

a) True
b) False

Answer 1

Expected Monetary Value (EMV) is the average or expected monetary outcome of a given decision if we know what would happen ahead of time. It is a true statement.

Step-by-step explanation:

Expected Monetary Value (EMV) is the average or expected monetary outcome of a given decision if we know what would happen ahead of time. Therefore, the statement is true.

For example, in a game with different outcomes and associated probabilities, the EMV is calculated by multiplying each outcome by its probability and summing them up. This gives the expected value or average outcome of the game.