Question: Select the least accurate statement. 1 The expected monetary value (EMV) criterion represents the long-run average of uncertain outcomes, so it should only be used

Select the least accurate statement.

1 The expected monetary value (EMV) criterion represents the long-run average of uncertain outcomes, so it should only be used for recurring decisions.

2 For each possible decision and each possible outcome, the payoff table lists the associated monetary value.

3 The certainty equivalent is the certain dollar amount a risk-averse decision maker would accept in order to avoid a gamble altogether.

4 For a risk-averse decision maker, the certainty equivalent is less than the expected monetary value (EMV).

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