GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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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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Detailed explanation-1: -Opportunity loss is. the difference between the optimal payoff and the actual payoff received; it’s the amount lost by not picking the best alternative. One of the most popular methods of decision making under risk is.
Detailed explanation-2: -The expected value of perfect information (EVPI) is the difference between the payoff under certainty and the payoff under risk.
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.
Detailed explanation-4: -A Payoff Table is a listing of all possible combinations of decision alternatives and states of nature. The Expected Payoff or the Expected Monetary Value (EMV) is the expected value for each decision.