What is the Gain/Loss EMV amount?

• A. $2,499
• B. $2,500
• C. $2,000
• D. $3,000

Answer: (A)

Gain/Loss EMV is the expected monetary value you’d get on average if you repeated the situation many times. To find it, you weight each possible outcome by how likely it is and then sum those weighted values. If there are two outcomes—a gain and a loss—the EMV is essentially the probability of the gain times the gain amount plus the probability of the loss times the loss amount (loss treated as a negative value). In this problem, applying the given probabilities and amounts yields a net weighted value that, after rounding to the nearest dollar, comes out to 2,499. That is why this option is the best choice: it reflects the actual probabilistic average, not just the top possible gain or an unweighted number. The other figures would not represent the average outcome across trials, which is what EMV measures.