Opportunity Loss Table : The opportunity Loss is defined as the difference between highest possible profit for a state of nature and the actual profit obtained for the particular action taken. In short opportunity loss is the loss incurred due to failure of not adopting the best possible course of action or strategy. Opportunity losses are calculated, separately for each state of nature that might occur. Thus to calculate opportunity loss for any state of nature for the prescribed course of action and take the difference between best payoff and payoff for each course of action for that state of nature. The opportunity loss for each course of action is known as the conditional opportunity loss.
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