Discussion
Opportunity loss refers to :
Answer: C
Opportunity loss is the difference between actual pay-off and optimal pay-off.
In decision theory, the opportunity loss (regret) of an action under a given state of nature is the pay-off of the best action for that state minus the pay-off of the action actually chosen. It measures what was given up by not choosing the best course, and it is zero when the best action was chosen.
It is not the expected value or expected loss of a bad decision, which are averages over states, and it is regret from choosing a less than optimal action, not from making no decision at all.
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