It **helps you in deciding between different choices by providing monetary values to the options**. It is a cheap way to evaluate risks using historical data. The expected monetary value calculator provides the average outcome of all identified risks.

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## What is expected monetary value in decision theory?

Expected monetary value (EMV) analysis is **a statistical concept that calculates the average outcome when the future includes scenarios that may or may not happen**. An EMV analysis is usually mapped out using a decision tree to represent the different options or scenarios.

## How do you calculate EMV in decision theory?

The EMV for any project is calculated by **multiplying the probability of each consequence taking place by the value of each possible consequence and its Impact**. Probability in this case is the likelihood of the occurrence of any event. For example, a coin has a 50% head outcome and 50% tail outcome when tossed.

## How do you calculate expected monetary value?

**Expected Monetary Value (EMV) Calculation Steps**

- Calculate the probability of occurrence of each risk.
- Calculate the impact of each risk as a monetary value.
- Multiply the probability by impact.

## What does EMV represent?

What does EMV stand for? EMV is short for **Europay, MasterCard, and Visa**, the 1994 founders. It commonly refers to a credit card with a smart chip. The EMV standard is a security technology used worldwide for all payments done with credit, debit, and prepaid EMV smart cards.