The ________________ is an approach to choosing a decision alternative based on the expected value of each decision alternative. The recommended decision alternative is the one that provides the best expected value. A) expected value approach B) maximum approach C) minimum approach D) minimum regret approach
Complex decisions with unclear results are common for people and organizations. These selections might vary from corporate investments to healthcare treatments. Decision makers use several methods to handle ambiguity and make reasonable decisions. Using the "expected value approach" or "expected monetary value (EMV) approach," choice alternatives may be systematically evaluated based on their prospective consequences and probability. This method helps decision-makers choose the option with the best average predicted result, making it useful for making rational judgments in uncertain situations. We'll cover the expected value approach's concepts and applications to show how it helps make optimum decisions across domains.
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