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.

The opportunity loss means the loss that arises by taking the difference between the profit i.e. optimal and the actual payoff received for a specific decision. It could occurred at the time when the best alternative is not picked up.

Therefore according to the given options, the option b is correct as it meets the criteria given in the question

Hence, all the other options are incorrect

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.

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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.