Which of the following statements the use of decision trees in multi-stage decision making problems is False?
A)Multi-stage decision making problems involve a sequence of decisions.
B)EVSI is an upper bound for the EVPI.
C)Multi-stage decision making problems using decision trees are solved moving backward.
D)EVSI measure the value of sample information.
E)The efficiency of sample information is a ratio of EVSI to EVPI.

Question

Quizplus · Accepted Answer

EVSI (Expected Value of Sample Information) is not an upper bound for EVPI (Expected Value of Perfect Information). Instead, EVPI is considered the maximum value that decision-makers should be willing to pay for having perfect information, and it is typically greater than or equal to EVSI, which quantifies the value of having additional, but not perfect, information.

Which of the Following Statements the Use of Decision Trees