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    Opportunity Loss Table

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    The probabilities for the states of nature A, B, and C are 0.3, 0.5, and 0.2, respectively. If a person were to use the expected opportunity loss criterion, what decision would be made?

    Opportunity Loss Table

    STATE OF NATURE
    ALTERNATIVES A B C
    Alternative 1 20 100 0
    Alternative 2 100 0 25
    Alternative 3 0 40 90

    A. Alternative 1
    B. Alternative 2
    C. Alternative 3
    D. State of Nature C
    E. State of Nature B.

    See the attached file.

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    https://brainmass.com/business/business-and-industry-analysis/opportunity-loss-table-414169

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    Solution Preview

    Expected opportunity loss in case of alternative 1=0.3*20+0.5*100+0.2*0=56 ...

    Solution Summary

    Solution selects one of the given alternatives with the help of opportunity loss criterion.

    $2.19

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