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

Question

Quizplus · Accepted Answer

The minimum expected opportunity loss is the difference between the expected value under certainty and the expected monetary value of the best alternative. This is also known as the expected value of perfect information, as it represents the maximum amount one would be willing to pay for perfect information about the outcome of a decision. Therefore, option B is correct.

The Minimum Expected Opportunity Loss Is Also Equal to