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Solve the following decision using EMV. You have three ideas: 1) Set up own business 2) Keep working where you are 3) Move to another
Solve the following decision using EMV. You have three ideas: 1) Set up own business 2) Keep working where you are 3) Move to another similar position You are currently making $50,000/year, if you move to another like position there is a 30% chance that make $60,000/yr and a 70% chance you will make $80,000/yr, but your cost of living will go up you w $10,000/yr. Your business can be two different types of business, consulting or internet based. As a consultant you have a 60% chance of making $75,000/yr and a 40% chance of just going back to work at $50,000/yr. Doing internet based work you have an 80% chance of making $110,000 per year and a 20% chance of making $40,000/year. Support your final decision by finding the largest EMV, draw the decision tree and place all numbers in the correct place
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