The expected value of perfect information (EVPI)is equal to
A)EMV with posterior information - EMV with prior information.
B)EMV with free perfect information - EMV with information.
C)EMV with free perfect information - EMV with no information.
D)EMV with perfect information - EMV with less than perfect information.

Question

Quizplus · Accepted Answer

The Expected Value of Perfect Information (EVPI) is the difference between the Expected Monetary Value (EMV) with perfect information and the EMV without any information. This measures the maximum amount a decision-maker would be willing to pay for having perfect information before making a decision.

The Expected Value of Perfect Information (EVPI)is Equal to