The EMV That a Person Is Willing to Give Up

question 26

Multiple Choice

The EMV that a person is willing to give up in order to avoid the risk associated with a gamble is referred to as the ________.

• A)risk premium
• B)certainty equivalent
• C)EVPI
• D)EVwPI
• E)EVSI

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Definitions:

Application Condition

Specific circumstances or requirements that must be met for a principle, law, or procedure to be applied.

Acceptance Condition

The circumstances or criteria that must be met for a proposal, hypothesis, or solution to be considered satisfactory or acceptable.

Premises

Statements or propositions from which conclusions are drawn or reasoned.

Test Condition

A specific set of parameters or circumstances under which an experiment, test, or study is executed.