Thank you so much Professor! I have a question.. will the results of the EMV value be appropriate in the future if the decision is selected based on the EMV value?
Hi there, Thank you for your comment. Based on my understanding of your question, the answer is yes - expected monetary value is typically calculated based on future estimates. For instance, this could include estimating the cost to mitigate poor quality materials supplied by a vendor. Since risk scenarios are always centered around future events or future conditions, values calculated based on probabilities and future scenarios will be relevant for the corresponding time period. Simply put, expected monetary value calculations are forward-looking and take into account potential future events or conditions and their associated probabilities. As a result, the calculated values will be applicable to the relevant future time frame. I hope this helps.
Very helpful! Thank you so much, Professor Alexis. I appreciate you for creating these videos.
My pleasure!
Thank you, professor, the videos are very Helpful.
Glad you've found them helpful. Thanks!
Thank you so much Professor! I have a question.. will the results of the EMV value be appropriate in the future if the decision is selected based on the EMV value?
Hi there,
Thank you for your comment. Based on my understanding of your question, the answer is yes - expected monetary value is typically calculated based on future estimates. For instance, this could include estimating the cost to mitigate poor quality materials supplied by a vendor. Since risk scenarios are always centered around future events or future conditions, values calculated based on probabilities and future scenarios will be relevant for the corresponding time period.
Simply put, expected monetary value calculations are forward-looking and take into account potential future events or conditions and their associated probabilities. As a result, the calculated values will be applicable to the relevant future time frame. I hope this helps.
@@Management_Doctor Thank you Professor ur answer is very helpful