The difference between expected payoff under certainty and expected value of the best act without certainty is the
A) expected value of perfect information.
B) expected rate of return.
C) expected monetary value.
D) expected net present value.

Question

Quizplus · Accepted Answer

The difference between expected payoff under certainty and expected value of the best act without certainty represents the value of having additional information. This value is called the expected value of perfect information, which is represented by choice A.

The Difference Between Expected Payoff Under Certainty and Expected Value