What is meant by the expected monetary value (EMV) of a decision alternative?
The EMV of a decision alternative is the sum of the products of the payoffs (profit or loss) and the state of nature probabilities.
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Bob Brain files a single tax return and decides to itemize his deductions. Bob's income for the year consists of $75,000 of salary, $3,000 long-term capital gain, and $1,500 interest income. Bob's expenses for the year consist of $800 in investment advice fees and $250 in tax return preparation fees. What is Bob's investment expense deduction?
A. $1,050. B. $250. C. $800. D. $0. E. None of the choices are correct.
Revenues:
a. increase owner's equity. b. decrease the owner's drawing account. c. increase expenses. d. decrease assets. e. have no effect on the accounting equation.
When a person buys a sweater from an unknown manufacturer and gives it to a friend as a present and the friend is injured because the sweater contains a poisonous dye?
A) The purchaser may be liable to the friend in contract. B) The manufacturer may be liable to the friend in contract. C) The purchaser may be liable to the friend in tort. D) The manufacturer may be liable to the friend in tort. E) Both C and D.
A probability tree is a graphical representation of how events occur through time, which is useful for calculating probabilities
a. True b. False Indicate whether the statement is true or false