Which of the following statements is incorrect? lop63 A subjective probability is one that is assigned to an event when there is no prior evidence about the likelihood of the occurrence of that event.

The expected value of perfect information is the difference between the expected value with perfect information and the best decision if perfect information is not available.

The opportunity loss is the difference between the best profit that could be realized if that environment occurred and the profit that would be realized for a given decision if that environment occurred.

In decision theory, the expression of personal preference is referred to as an ‘‘expected utility value.”’

When the probability distributions for proposed investment projects are not normally distributed, the coefficient of variation should be used as a measure of relative risk.