Instruction 17-3
The following payoff table shows profits associated with a set of three alternatives under two possible events.
$$\begin{array} { c c c c }
\text { States } & A 1 & A 2 & A B \
\hline 1 & 12 & - 2 & 8 \
2 & 4 & 10 & 5
\end{array}$$ where:
S1 is event 1
A1 is action alternative 1
S2 is event 2
A2 is action alternative 2
A3 is action alternative 3
-Referring to Instruction 17-3,the opportunity loss for A3 when S2 occurs is _______.
A) 5
B) 6
C) 4
D) 0

Question

Instruction 17-3
The following payoff table shows profits associated with a set of three alternatives under two possible events.
 $$\begin{array} { c c c c } 
\text { States } & A 1 & A 2 & A B \
\hline 1 & 12 & - 2 & 8 \
2 & 4 & 10 & 5
\end{array}$$ where:
S1 is event 1
A1 is action alternative 1
S2 is event 2
A2 is action alternative 2
A3 is action alternative 3
-Referring to Instruction 17-3,the opportunity loss for A3 when S2 occurs is  _______.
A) 5
B) 6
C) 4
D) 0

Quizplus · Accepted Answer

The opportunity loss for A3 when S2 occurs is 5. This is because the profit for A3 when S2 occurs is 5, and the profit for A2 when S2 occurs is 10. Therefore, the opportunity loss for A3 when S2 occurs is 10 - 5 = 5.

Instruction 17-3 the Following Payoff Table Shows Profits Associated with a Set

Instruction 17-3
the Following Payoff Table Shows Profits Associated with a Set