168k views
5 votes
The optimal value corresponding to an optimal solution minimizing the expected monetary value is equal to the expected optimal values corresponding to the optimal solutions for each scenario. True or false

1 Answer

5 votes

Final answer:

The optimal value corresponding to an optimal solution minimizing the expected monetary value is equal to the expected optimal values corresponding to the optimal solutions for each scenario. This statement is true.

Step-by-step explanation:

The statement is True. The optimal value corresponding to an optimal solution minimizing the expected monetary value is indeed equal to the expected optimal values corresponding to the optimal solutions for each scenario. This concept is often used in decision analysis and optimization problems. When considering multiple scenarios with different probabilities, the expected value serves as a way to estimate the central tendency of the potential outcomes. In the context of minimizing the expected monetary value, the optimal value represents the best possible outcome given the probabilities and expected values associated with each scenario.

User InitialZero
by
8.3k points