Based on EMV analysis of the given risk data, which option has the lower EMV?

Based on EMV analysis of the given risk data, which option has the lower EMV?

• A. Option B
• B. Option A
• C. Both have the same EMV
• D. Neither option has EMV

Answer: (A)

EMV represents the expected monetary value of risk, calculated as probability multiplied by impact, and for several risks you sum those products. When comparing options, the one with the smaller EMV is the preferable choice because it reflects a lower expected loss from risk. In this scenario, the data show that the option described as the other choice has a smaller EMV than the alternative, so that option yields the lower EMV overall. The remaining possibilities would require equal EMVs or no EMV, which isn’t supported by the given results.

EMV represents the expected monetary value of risk, calculated as probability multiplied by impact, and for several risks you sum those products. When comparing options, the one with the smaller EMV is the preferable choice because it reflects a lower expected loss from risk.

In this scenario, the data show that the option described as the other choice has a smaller EMV than the alternative, so that option yields the lower EMV overall. The remaining possibilities would require equal EMVs or no EMV, which isn’t supported by the given results.