LCM of two numbers

Expected Monetary Value Calculator

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✖Probability represents the probability of the ith outcome occurring.ⓘ Probability [Po]			+10% -10%
✖Impact is the financial result of the outcome and can range from any negative number to any positive number, depending on if the impact is positive or negative on the firm’s bottom line.ⓘ Impact [Imp]			+10% -10%

✖Expected Monetary Value represents the average financial outcome when considering the probability of various possible outcomes occurring.ⓘ Expected Monetary Value [EMV]

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Expected Monetary Value Solution

STEP 0: Pre-Calculation Summary

Formula Used

Expected Monetary Value = multi(Probability,Impact)
EMV = multi(Po,Imp)
This formula uses 1 Functions, 3 Variables

Functions Used

multi - Multiplication is the process of calculating the product of two or more numbers., multi(a1, …, an)

Variables Used

Expected Monetary Value - Expected Monetary Value represents the average financial outcome when considering the probability of various possible outcomes occurring.
Probability - Probability represents the probability of the ith outcome occurring.
Impact - Impact is the financial result of the outcome and can range from any negative number to any positive number, depending on if the impact is positive or negative on the firm’s bottom line.

STEP 1: Convert Input(s) to Base Unit

Probability: 0.6 --> No Conversion Required
Impact: 130000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

EMV = multi(Po,Imp) --> multi(0.6,130000)

Evaluating ... ...

EMV = 78000

STEP 3: Convert Result to Output's Unit

78000 --> No Conversion Required

FINAL ANSWER

78000 <-- Expected Monetary Value

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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Satyawati College (DU), New Delhi

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Expected Monetary Value Formula

LaTeX Go

Expected Monetary Value = multi(Probability,Impact)
EMV = multi(Po,Imp)

What us Expected Monetary Value?

Expected Monetary Value (EMV) is a fundamental concept in decision theory and risk analysis, particularly in the context of project management and financial decision-making. It provides a quantitative measure of the potential value or outcome associated with uncertain events or scenarios. EMV is calculated by multiplying the value of each possible outcome of an uncertain event by its probability of occurrence and summing these products.
In practical terms, Expected Monetary Value enables decision-makers to evaluate the potential outcomes of a decision or project in monetary terms, accounting for both the likelihood of occurrence and the associated financial impact. By considering all possible outcomes and their probabilities, decision-makers can make more informed choices that maximize expected value or utility.
For instance, in project management, various risks and uncertainties may impact project outcomes, such as cost overruns, delays, or changes in market conditions.

How to Calculate Expected Monetary Value?

Expected Monetary Value calculator uses Expected Monetary Value = multi(Probability,Impact) to calculate the Expected Monetary Value, The Expected Monetary Value is a concept commonly used in decision theory and risk analysis to quantify the potential outcomes of uncertain events or decisions in terms of their monetary value. Expected Monetary Value is denoted by EMV symbol.

How to calculate Expected Monetary Value using this online calculator? To use this online calculator for Expected Monetary Value, enter Probability (Po) & Impact (Imp) and hit the calculate button. Here is how the Expected Monetary Value calculation can be explained with given input values -> 78000 = multi(0.6,130000).

FAQ

What is Expected Monetary Value?

The Expected Monetary Value is a concept commonly used in decision theory and risk analysis to quantify the potential outcomes of uncertain events or decisions in terms of their monetary value and is represented as EMV = multi(Po,Imp) or Expected Monetary Value = multi(Probability,Impact). Probability represents the probability of the ith outcome occurring & Impact is the financial result of the outcome and can range from any negative number to any positive number, depending on if the impact is positive or negative on the firm’s bottom line.

How to calculate Expected Monetary Value?

The Expected Monetary Value is a concept commonly used in decision theory and risk analysis to quantify the potential outcomes of uncertain events or decisions in terms of their monetary value is calculated using Expected Monetary Value = multi(Probability,Impact). To calculate Expected Monetary Value, you need Probability (Po) & Impact (Imp). With our tool, you need to enter the respective value for Probability & Impact and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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