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A company needs to make an important decision in the face of uncertainty. It has been estimated that the firm will either gain $10 000

A company needs to make an important decision in the face of uncertainty. It has been estimated that the firm will either gain $10 000 with probability 0.4, gain $1000 with probability of 0.3 or lose $5000 with probability 0.3. Having taken a Business Analytics course, employee X (correctly) calculates the EMV as $2800. Her colleague Y distrusts her analysis, since after all, the firm will either receive 10 000, 1000 or lose 5000, and 2800 is not one of these options. Who is correct and why?

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