Question: Study the table below and use it to calculate the Expected Monetary Values (EMV) of the different outcomes. DECISION TABLE WITH CONDITIONAL VALUES STATE OF

Study the table below and use it to calculate the Expected Monetary Values (EMV) of the different outcomes.


DECISION TABLE WITH CONDITIONAL VALUES


STATE OF NATURE

FAVORABLE OUTCOME

UNFAVORABLE OUTCOME

ALTERNATIVE

($)

($)

Construct a Large Plant

300,000

-150,000

Construct a Small Plant

120,000

-30,000

No Plant

0

0

Probability

0.5

0.5

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