expected monetary value definition

expected monetary value

Total of the weighted outcomes (payoffs) associated with a decision, the weights reflecting the probabilities of the alternative events that produce the possible payoff. It is expressed mathematically as the product of an event's probability of occurrence and the gain or loss that will result. See also expected value.

expected monetary value is in the Decision Making, Problem Solving, & Strategy, Economics, Politics, & Society and Statistics, Mathematics, & Analysis subjects.

expected monetary value appears in the definition of the following term: expected value (EV)

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