The expected opportunity loss of the best decision alternative is the _____.
A) expected value
B) payoff
C) expected value of perfect information
D) None of the answers is correct.

Question

Quizplus · Accepted Answer

The expected opportunity loss of the best decision alternative is the expected value of perfect information, which represents the cost of not having perfect information about the outcomes of the decision alternatives. Therefore, the best choice is to gather more information to reduce this cost and make a more informed decision.

The Expected Opportunity Loss of the Best Decision Alternative Is