Author Question: Expected monetary value (EMV) is: a. the average or expected value of the decision if you knew what ... (Read 55 times)

tth · **on:** Jun 24, 2018

Expected monetary value (EMV) is:
a. the average or expected value of the decision if you knew what would happen ahead of time
b. the weighted average of possible monetary values, weighted by their probabilities
c. the average or expected value of the information if it was completely accurate
d. the amount that you would lose by not picking the best alternative
e. a decision criterion that places an equal amount on all states of nature

Question 2

In a nonlinear transformation of data, the Y variable or the X variables may be transformed, but not both.
a. True
b. False
Indicate whether the statement is true or false