Which of the following is true about the expected value of perfect information?
A)It is the amount you would pay for any sample study.
B)It is calculated as EMV minus EOL.
C)It is calculated as expected value with perfect information minus maximum EMV.
D)It is the amount charged for marketing research.

Question

Quizplus · Accepted Answer

The expected value of perfect information is calculated as the expected value with perfect information minus the maximum expected monetary value (EMV). This represents the additional value that could be gained if perfect information was available to make the best decision. The other options are incorrect as they do not accurately define the concept of the expected value of perfect information.

Which of the Following Is True About the Expected Value