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

Question

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

Quizplus · Accepted Answer

The minimum expected opportunity loss (EOL) is equal to the expected value of perfect information (EVPI). EVPI represents the maximum amount a decision-maker would be willing to pay for perfect information about the future, which aligns with the concept of minimizing the opportunity loss by making the best decision possible with that perfect information.

The Minimum Expected Opportunity Loss (EOL)is Also Equal to