When using the Bayes decision rule the expected value for a

When using the Bayes\' decision rule, the expected value for a given alternative is:

the amount the decision maker will receive if that alternative is chosen.

the amount the decision maker is most likely to receive if that alternative is chosen.

the average amount the decision maker would receive in the long run.

the amount by which the decision maker will regret choosing that alternative.

None of the above

Solution

Correct Answer:

The amount the decision maker is most likely to receive if that alternative is chosen.

Explanation:

Expected value is calculated on the basis of probabilities issued for getting a particular value. Here , expected value is achieved through weighted average method. Thus, expected value becomes the most likely value received by the alternative under the Bayes decision rule.