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Suppose a decision maker is considering three decision alternatives: A1, A2, and A3. Three potential states of nature have been identified: S1, S2, and S3.
Suppose a decision maker is considering three decision alternatives: A1, A2, and A3. Three potential states of nature have been identified: S1, S2, and S3. The payoff for each combination of alternative and state of nature has been estimated and appears in the following payoff table:
S1 | S2 | S3 | |
A1 | 113 | 96 | -65 |
A2 | 117 | 62 | -52 |
A3 | 32 | 45 | 40 |
Calculate the regret (or opportunity loss) value for the combination of A2 and S2.
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