in a CPM/PERT network, the earliest and latest times at which an activity can be started without exceeding the critical path project time
economic forecast
a prediction of the state of the economy in the future
economic order quantity (EOQ)
the optimal order size that corresponds to total minimum inventory cost
efficiency of sample information
an indicator of how close to perfection sample information is; it is computed by dividing the expected value of sample information by the expected value of perfect information
empirical
consisting of (or based on) data or information gained from experiment and observation
equal likelihood criterion
a decision-making method in which all states of nature are weighted equally (also known as the LaPlace criterion)
equilibrium point
the outcome of a game that results from a pure strategy
event
the possible result of a probability experiment
events
in a CPM/PERT project network, the nodes that reflect the beginning and termination of activities
expected monetary value
the expected (average) monetary outcome of a decision, computed by multiplying the outcomes by their probabilities of occurrence and summing these products
expected opportunity loss
the expected cost of the loss of opportunity resulting from an incorrect decision by the decision maker
expected value
an average value computed by multiplying each value of a random variable by its probability of occurrence
expected value of perfect information ( EVPI )
the value of information expressed as the amount of money that a decision maker would be willing to pay to make a better decision
expected value of sample information
the difference between the expected value of a decision situation with and without additional information
experiment
in probability, a particular action, such as tossing a coin
exponential distribution
a probability distribution often used to define the service times in a queuing system
exponential smoothing
a time series forecasting method similar to a moving average in which more recent data are weighted more heavily than past data
extreme points
the maximum and minimum points on a curve (also known as relative extreme points); in a linear programming problem, a protrusion in the feasible solution space