QUESTION 17 Expected monetary value (EMV) is the average or expected value of the decision, if you know what would happen ahead of time. the amount you would lose by not picking the best alternative. the average or expected value of information if it were completely accurate, the average or expected monetary outcome of a decision if it can be repeated a large number of times. QUESTION 18 A company is considering producing a new children's bar soap. A market research firm has told the company that if they perform a survey, a positive survey of a favorable market occurs 65 percent of the time. That is, positive survey favorable market) - 0.65. Similarly, 40 percent of the time the survey falsely predicts a favorable market thus, P{positive survey unfavorable market) - 0.40. These statistics indicate the accuracy of the survey. Prior to contacting the market research firm, the company's best estimate of a favorable market was 50 percent. So, P favorable market) -0.50 and Pfunfavorable market) - 0.50. Using Bayes' theorem, determine the probability of a favorable market given a favorable survey 0.38 0.62 0.53 0.65 QUESTION 19 A market research survey is available for $10,000. Using a decision tree analysis, it is found that the expected monetary value with no survey is $62,000. If the expected value of sample information is $7,000, what is the expected monetary value with the survey? $62,000 $45,000 -$17,000 $59,000