Six Sigma Black Belt

Answer: C - The Pi in the EOL equation stands for Probability.

Key Takeaway: Opportunity loss is the difference between an actual return from an action or a decision and the highest possible return, given a particular event. For example, if a venture has a highest possible return of 2 million dollars and yet manages to return an actual amount of 1.8 million dollars, the opportunity loss is $200,000. To calculate the Expected Opportunity Loss (EOL), it is important to determine the probability of the particular event.