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# TOPIC: Expected monetary value explanation on E11.07 Deci

## Expected monetary value explanation on E11.07 Deci 14 years 7 months ago #988

 Francisco Jimenez Buendia Topic Author Offline Fresh Boarder Posts: 1 Thank you received: 0 Hi I would like to ask about the calculation done for the expected monetary value on E11.07. The explanation about expected monetary value in the video at 16:24 states that EMV for the outdoor tennis tournament is 315,000, which is the maximum of: -Rain:84,000 (0,4*210,000) -Sunshine:315,000 (0,6*525,000) However, from the example on PMBOK (figure 11-15, page 299) I had expected that EMV=84,000+315,000 Can you explain why using the maximum of Rain and Sunshine instead of the addition? Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Re:Expected monetary value explanation on E11.07 D 14 years 7 months ago #989

 Cormac Donnelly Offline Fresh Boarder Posts: 1 Thank you received: 0 I just watched the same episode and had a similar question! My calculation (based on the example on page 299 of The PMBOK Guide is): Indoor: £418,000 = (0.4*£385,000) + (0.6*£440,000) Outdoor: £399,000 = (0.4*£210,000) + (0.6*£525,000) Therefore Decision EMV = £418,000. As per The PMBOK Guide, EMV calculates the average outcome, not just the best. Cornelis, please clarify! Regards, Cormac. Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.