The expected value of information that would tell the decision maker exactly which state of nature is going to occur is the _____.
A) expected value of sample information
B) expected value of perfect information
C) maximum information
D) expected value

Question

Quizplus · Accepted Answer

The expected value of information that would tell the decision maker exactly which state of nature is going to occur is the expected value of perfect information. This is because perfect information would eliminate all uncertainty and allow the decision maker to make the best decision possible.

The Expected Value of Information That Would Tell the Decision