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PMI-PBA - Decision Modeling and Analysis - Expected Monetary Value Analysis
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Which approach best explains how Expected Monetary Value (EMV) analysis handles risks with substantially different probability distributions?
a.
It combines weighted probabilities with their respective impacts to create a standardized measure
b.
It transforms varying probability distributions into equivalent normal distributions for comparative analysis
c.
It applies weighted averages and standard deviation calculations to ensure uniform risk assessment across distributions
d.
It uses advanced statistical models to normalize all probability distributions into a common baseline metric
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