The expected monetary value decision is always the same as the expected opportunity loss decision.

Question

Quizplus · Accepted Answer

The expected monetary value (EMV) decision is the decision that is expected to result in the highest monetary value. The expected opportunity loss (EOL) decision is the decision that is expected to result in the lowest opportunity loss. Since opportunity loss is the difference between the EMV and the actual value of a decision, the EMV decision will always have an EOL of 0. Therefore, the EMV decision is always the same as the EOL decision.

The Expected Monetary Value Decision Is Always the Same as the Expected