A decision maker's worst option has an expected value of $2,550, and the decision maker's best option has an expected value of $4,750. With perfect information, the expected value would be $6,000. What is the expected value of perfect information?
A)$2,200
B)$4,250
C)$3,450
D)$1,250
E)$650

Question

Quizplus · Accepted Answer

The expected value of perfect information is the difference between the expected value with perfect information and the best expected value without it. So, $6,000 - $4,750 = $1,250.

A Decision Maker's Worst Option Has an Expected Value of $2,550