Since the expected monetary value decision is always the same as the expected opportunity loss decision, then EMV*( $a _ { i }$ ) = EOL*( $a _ { i }$ ), for any alternative $a _ { i }$ .

Question

Quizplus · Accepted Answer

The statement is incorrect. While EMV and EOL are related concepts, they are not always the same. EMV considers the potential monetary gain or loss of each alternative, while EOL considers the potential missed opportunity or loss of each alternative. Only in certain situations will the values be equal, such as when the opportunity cost is equal to the monetary gain/loss.

Since the Expected Monetary Value Decision Is Always the Same aia _ { i }ai​

Since the Expected Monetary Value Decision Is Always the Same $a _ { i }$