Question

Regret Table Success Moderate Success Failure
Probability 0.3 0.3 0.4
Sell Company 113 50 0
Form Joint Venture 210 0 41
Sell Software on own 0 170 100

Calculate the EOL decision for: Form Joint Venture

Answer 1

EOL(Form Joint Venture) = 0.3(210) + 0.3(0) + 0.4(41) = 63 + 0 + 16.4 = 79.4

So the expected opportunity loss for Form Joint Venture is 79.4 (same units as the regret table).