The following is an opportunity-loss table. The probabilities for the states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a person were to use the expected opportunity loss criterion, what decision would be made?
A) Alternative 1
B) Alternative 2
C) Alternative 3
D) State of Nature C
E) State of Nature B

Question

The following is an opportunity-loss table.  The probabilities for the states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a person were to use the expected opportunity loss criterion, what decision would be made?
A) Alternative 1 
B) Alternative 2 
C) Alternative 3 
D) State of Nature C 
E) State of Nature B

Quizplus · Accepted Answer

The Answer of The following is an opportunity-loss table.  The probabilities for the states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a person were to use the expected opportunity loss criterion, what decision would be made?
A) Alternative 1 
B) Alternative 2 
C) Alternative 3 
D) State of Nature C 
E) State of Nature B

The Following Is an Opportunity-Loss Table