The minimum expected opportunity loss is also equal to the:
A)expected profit under certainty.
B)expected value of perfect information.
C)coefficient of variation.
D)expected value under certainty minus the expected monetary value of the worst alternative.

Question

Quizplus · Accepted Answer

The minimum expected opportunity loss is the expected cost of the best alternative minus the expected value under certainty. The expected value of perfect information is the difference between the expected value with perfect information and the expected value under certainty. Therefore, the minimum expected opportunity loss is also equal to the expected value of perfect information.

The Minimum Expected Opportunity Loss Is Also Equal to The