The expected value of perfect information (EVPI)places a lower bound on how much a decision maker should be willing to pay to obtain perfect information.

Question

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The expected value of perfect information (EVPI) places an upper bound on how much a decision maker should be willing to pay for perfect information, not a lower bound. It represents the maximum amount that should be paid to eliminate uncertainty.

The Expected Value of Perfect Information (EVPI)places a Lower Bound