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Course Details

Decision Optimization by Maximizing Expected Value (Video) (Course Id 2507)

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Author : Rob Stephens, Founder of CFO Perspective, Adjunct Instructor Gonzaga University
Course Length : Pages: 7 ||| Review Questions: 3 ||| Final Exam Questions: 5
CPE Credits : 1.0
IRS Credits : 0
Price : $14.95
Passing Score : 70%
Course Type: Video - NASBA QAS - Text - NASBA Registry
Technical Designation: Technical
Primary Subject-Field Of Study:

Finance - Finance for Course Id 2507

Description :

Expected value analysis is a powerful way to distill a massive array of possibilities into a few numbers, which helps clarify the most profitable course of action. This short course goes from the basics to important insights for business financial management.

It starts with a simple calculation based on potential outcomes and their probability. The first lesson walks you through the calculation and points out limits to it. We then look at influence diagrams, which are a good way to get a high-level view of the key factors in an expected value decision.

Next, we look at decision trees. Decision trees show the sequence of decisions and uncertainties. Every path through the tree is a scenario for which we can calculate an EV. The tree shows a range of outcomes, their probabilities, and the value of those outcomes. This helps us assess and clearly communicate both the EV and risk. We can better help evaluate the odds and magnitude of gaining – or losing – money.

Usage Rank : 10000
Release : 2025
Version : 1.0
Prerequisites : None.
Experience Level : Overview
Additional Contents : Complete, no additional material needed.
Additional Links :
Advance Preparation : None.
Delivery Method : QAS Self Study
Intended Participants : Anyone needing Continuing Professional Education (CPE).
Revision Date : 12-Mar-2025
NASBA Course Declaration : Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam.
Approved Audience :

Video - NASBA QAS - Text - NASBA Registry - 2507

Keywords : Finance, Decision, Optimization, Maximizing, Expected, Value, Video, cpe, cpa, online course
Learning Objectives :

Course Learning Objectives

Upon completion of this course, participants will be able to do the following:
  • Recall how to calculate the expected value.
  • Recognize decision tools.
  • Identify ways to reduce risk.

Course Contents :

Chapter 1 - Decision Optimization by Maximizing Expected Value

Chapter 1 Review Questions

Glossary

Click to go to: Finance CPE Courses | CPE Think
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