The expected monetary value without information is $60, and the expected monetary payoff with perfect information is $120.The expected value of perfect information is __.
A)$60
B)$2
C)$180
D)$0.50
E)$120

Question

Quizplus · Accepted Answer

The expected value of perfect information (EVPI) is calculated by subtracting the expected monetary value without information from the expected monetary value with perfect information. Therefore, EVPI = $120 - $60 = $60.

The Expected Monetary Value Without Information Is $60, and the Expected