Opportunity Loss

STATES OF NATURE STATES OF NATURE
ACT #1 #2 #3 ACT #1 #2 #3

(.5) (.3) (.2) (.5) (.3) (.2)

A 120 35 -10 A

B 75 40 80 B

C 10 90 20 C
 

1. Find the following:

Maximax

Maximin

Laplace

Minimax regret (need to use the opportunity loss table)

Determine the expected profit (EMV) of each act. Which act is best?

Determine the expected opportunity loss (EOL) of each act. Which act is best?

Determine the expected value of perfect information (EVPI). (2 methods)