hw expected monetary value calculate the emv for the following scenario please see requirement
Calculate the EMV for the following scenario.
Imagine that you are asked to play the following game with 5 of your friends*. Everyone is given a number from 1 to 6, and each person puts in $10. The die is rolled and the lucky person that matches the number that comes up on the dice, gets to keep all the money ($60).
Formula: EMV = P(O1)*M(O1) + P(O2)*M(O2)+ . . . + P(On)*M(On)
•What is the Expected Monetary Value (EMV) calculation for this game?
•Is it a good idea to participate in this game?
•Under what circumstances would it, or would it not be, a good idea to participate?
* Other than the obvious relationship to running a casino, the scenario is also similar to marketing contexts in terms of calculating the expected monetary value associated with customer relationship management, loyalty programs, etc; that have their associated outcomes and probabilities of outcomes.
Attached is the related weekly slides for this HW. Please review it before start.
