Problem:
The following is an opportunity-loss table.
State of Nature
Aleternatives A B C
Aleternative 1 20 100 0
Aleternative 2 100 0 25
Aleternative 3 0 40 90
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?
- Alternative 1
- Alternative 2
- Alternative 3
- State of Nature C
- State of Nature B