An Expected Value Decision Model Is Used for

question 97

Multiple Choice

An expected value decision model is used for

• A)determining if a budgeted amount will deviate from an actual amount.
• B)determining if a budgeted amount will be the same as an actual amount.
• C)enabling managers to deal with events using a qualitative analysis method.
• D)enabling managers to deal with uncertainty using quantitative analyses.
• E)identifying factors that distinguish an action from an event.

---

Definitions:

Indifference Curves

Graphical representations used in microeconomics to illustrate different combinations of two goods that provide the same level of utility or satisfaction to a consumer.

Standard Deviation

A statistical measure of the dispersion or variability of a set of numbers, indicating how spread out the numbers are from the mean.

Expected Return

The weighted average of all possible returns from an investment, where each return is weighted by its probability of occurring.

Real Estate Project

An initiative involving the purchase, improvement, management, or sale of property assets for the purpose of generating profits or revenue.