# 21 Regret Table Success Moderate Success Failure Probability 0.3 0.3 0.4 Sell Company 81 50 0 Form Joint Venture 210...

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# 21 Regret Table Success Moderate Success Failure Probability 0.3 0.3 0.4 Sell Company 81 50 0 Form Joint Venture 210 0 23 S

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Answer 1

Answer #1

The Expected Opportunity Loss (EOL) is a technique used to make decisions under uncertainty, under the assumption that the probabilities of each state of nature is known.

EOL decision for Sell Company = 81(0.3)+50(0.3)+0(0.4) =39.3

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Answer 2

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