# Payoff table

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

A. 0

B. 1.2

C. 4.8

D. 5.6

https://brainmass.com/statistics/probability/payoff-table-90113

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#### Solution Summary

Solution contains calculations of the expected opportunity loss (EOL)

$2.19