Opportunity loss is the difference between the optimal payoff and the actual payoff received.

Name: Opportunity loss is the difference between the optimal payoff and the actual payoff received.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Opportunity loss is defined as the loss that occurs when one alternative is chosen over another. It is the difference between the maximum payoff that could have been obtained from a decision and the actual payoff received. Therefore, option A is correct.

Opportunity Loss Is the Difference Between the Optimal Payoff and the Actual