The maximum value of perfect information to the decision maker is known as
A)the expected value of perfect information
B)the expected value of imperfect information
C)the minimum of the minimax regret
D)none of the above

Question

Quizplus · Accepted Answer

The maximum value of perfect information refers to the expected value of perfect information, which is the difference between the expected value of making a decision with perfect information and the expected value of making a decision without perfect information. It represents the highest amount that a decision maker would be willing to pay for perfect information before it becomes economically unfeasible.

The Maximum Value of Perfect Information to the Decision Maker