Consider the following decision table with rewards in $ millions. The opportunity loss for the combination "S₃" and "d₁" is ___. A)9 B)5 C)3 D)0 E)-1

Question

Quizplus · Accepted Answer

The opportunity loss is the difference between the highest reward for a particular combination of choices and the reward for a different choice that has already been made. In this case, the highest reward for "S₃" and "d₁" is 8, and the reward for "d₁" has already been chosen, which is also 8. Therefore, the opportunity loss is 0. The best choice is to stick with "d₁" as there is no opportunity loss to switch to "S₃".

Consider the Following Decision Table with Rewards in $ Millions