The amount of loss (lower profit or higher cost) from not making ...

[karlynnae]

The amount of loss (lower profit or higher cost) from not making the best decision for each state of nature is known as
 a. best payoff.
  b. opportunity loss.
  c. risk profile.
  d. utility.

Question 2

For a minimization problem, the conservative approach often is referred to as the __________ approach.
 a. maximin
  b. minimax
  c. minimin
  d. maximax

[bd5255]

Answer to Question 1

b
RATIONALE: The amount of loss (lower profit or higher cost) from not making the best decision for each state of nature is known as regret or opportunity loss.

Answer to Question 2

b
RATIONALE: For a minimization problem, the conservative approach often is referred to as the minimax approach.

[karlynnae]

Thanks for the timely response, appreciate it

[patma1981]

YES! Correct, THANKS for helping me on my review