EVPI and minimum EOL are equivalent.

Question

Quizplus · Accepted Answer

EVPI is the expected value of perfect information, which is the maximum amount that a decision-maker would be willing to pay for perfect information about the future. Minimum EOL is the minimum expected opportunity loss, which is the expected loss that a decision-maker would incur if they made the worst possible decision. Since perfect information would allow a decision-maker to make the best possible decision, EVPI and minimum EOL are equivalent.

EVPI and Minimum EOL Are Equivalent