- Words: 679
- Length: 2 Pages
- Topic: Business - Management
- Paper #: 5742732
Secondly, the manager should consider calculating an expected value for every concluded branch, then each probable node and every decision node as a simple means of identifying expected values for each decision alternative. While the expected value is equal to the payoff, it is also the product of its probability and payoff.
Due to its results, the expected value rule is regarded as the most reliable way of judgment in