Economic decision making in veterinary practice: Expected value and risk as dual utility scales

Abstract Measurement of variance or standard deviation of return values provides a method of quantifying the riskiness of a particular course of action. The quantified risk can be used together with expected return value as dual criteria for ranking alternatives in decision analysis. Furthermore, when choosing between interventions, a risk and return break-even point can be determined. Depending on the decision-maker's attitude to risk, risk consideration may modify a decision made by comparison of expected values alone.