Project Management

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Topics: Construction, Consulting, Risk Management
what is EMV ?
Expected monetary value analysis. 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 (i.e., analysis under uncertainty).
The EMV of opportunities are generally expressed as positive values, while those of threats are expressed as negative values.
EMV requires a risk-neutral assumption neither risk averse nor risk seeking.
EMV for a project is calculated by multiplying the value of each possible outcome by its probability of occurrence and adding the products together.

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