Question

Determine the expected value of perfect information using an opportunity loss table

Answer 1

Expected opportunity loss (EOL) is a statistical calculation used primarily in the business field to help determine optimal courses of action. Doing business is full of decision making. Any decision consists of a choice between two or more events. For each event, there are two or more possible courses of action that you might take. Calculating the EOL is an organized way of using a mathematical model to compare these choices and outcomes, to make the most profitable decision.