TABLE 17-1
the Following Payoff Table Shows Profits Associated with a Set

question 82

Multiple Choice

TABLE 17-1
The following payoff table shows profits associated with a set of 3 alternatives under 2 possible states of nature.
$\begin{array}{llcc} \text {States } &\text { A1 }&\text { A2 }&\text {A3 }\\\hline1&12&-2&8\\2&4&10&5\end{array}$


$\text {where:}$$\quad$$\quad$ $\text {S1 is state of nature 1 }$$\quad$$\text {A1 is action alternative 1}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\text {S2 is state of nature 2}$$\quad$$\text { A2is action alternative 2}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {A3 is action alternative3 }$

-Referring to Table 17-1, if the probability of S1 is 0.5, what is the expected opportunity loss (EOL) for A3?

• A) 4.5
• B) 7
• C) 8
• D) 3

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Definitions:

Quality

A characteristic or property that distinguishes an object, material, or service, determining its nature and significance.

Categorical Proposition

A statement that asserts or denies something about all members of a category.

Quantity

A characteristic that pertains to the amount or number of objects or units.

Quality

In logic, quality refers to the positive or negative nature of a categorical proposition, with affirmative propositions asserting something about the subject and negative propositions denying something.