The expected monetary value (EMV)decision is always the same as the expected opportunity loss (EOL)decision because the opportunity loss table is produced directly from the payoff table.

Question

Quizplus · Accepted Answer

The EMV decision is the decision that maximizes the expected value of the outcome, while the EOL decision is the decision that minimizes the expected opportunity loss. The opportunity loss table is produced directly from the payoff table, and the opportunity loss for each decision is simply the difference between the payoff for that decision and the payoff for the best possible decision. Therefore, the EMV decision and the EOL decision will always be the same.

The Expected Monetary Value (EMV)decision Is Always the Same as the Expected