TABLE 17-5
the Following Payoff Table Shows Profits $\quad$

question 22

Short Answer

TABLE 17-5
The following payoff table shows profits associated with a set of 2 alternatives under 3 possible events.
$\quad$ $\quad$ $\quad$ $\quad$ $\text {Action }$
$\begin{array} { c c c } \text { Event } & A & B \\1 & 1000 & 1200 \\2 &500 & 700\\3&300&-200\end{array}$
Suppose that the probability of Event 1 is 0.2, Event 2 is 0.5, and Event 3 is 0.3.
-Referring to Table 17-5, what is the opportunity loss for Action B with Event 3?

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Definitions:

Shared Variance

The portion of variance that is common among multiple variables, indicating the degree to which they are related or share commonality.

Shared Variance

The proportion of variance that two variables share, indicating the strength of their relationship or correlation.

Negative Slope

A downward slope indicating an inverse relationship between two variables, where an increase in one correlates with a decrease in the other.

Xy Axis

Refers to the two-dimensional coordinate system formed by the intersection of the x-axis (horizontal) and y-axis (vertical), used for graphing equations or data points.