The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature.
States A1 A2 A3
1 12 -2 8
2 4 10 5
Where: S1 is state of nature 1 A1 is action alternative 1
S2 is state of nature 2 A2 is action alternative 2
A3 is action alternative 3
Referring to the table above, if the probability of S1 is 0.2 and S2 is 0.8, then the expected opportunity loss (EOL) fro A1 is
Please see the file attached for detailed calculations. ...
Solution contains calculations of the expected opportunity loss (EOL)