BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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diffence between expected payoff and actual payoff is called
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1.deviation
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2.standard deviation
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3. variability
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4.none of the above
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Explanation:
Detailed explanation-1: -The expected value of perfect information (EVPI) is the difference between the payoff under certainty and the payoff under risk.
Detailed explanation-2: -Expected value is a measure of what you should expect to get per game in the long run. The payoff of a game is the expected value of the game minus the cost. If you expect to win about $2.20 on average if you play a game repeatedly and it costs only $2 to play, then the expected payoff is $0.20 per game.
Detailed explanation-3: -The Expected Payoff refers to the gain or loss expected with each outcome. If there are multiple decisions to be made, a business will calculate the expected value for each decision to determine which is most favorable.
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