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Using the Decision Tree above, "Path A" has a 70% success rate 200k and a 30% failure rate -50k. What is the Expected Monetary Value (EMV) the BA should report?

publish date: 2026/03/24 22:14:46.250420 UTC

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Decision Path A Chance 70% success Success $200,000 0.70 × $200k = +$140,000 30% failure Failure −$50,000 0.30 × −$50k = −$15,000

Correct Answer

$125,000

Explanation

(0.7 \times 200,000) + (0.3 \times -50,000) = 140,000 - 15,000 = 125,000.

Reference

go-math-science.com

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