Which of the following best describes the expected value of sample information (EVSI)?
A) EVSI is the expected payoff with perfect information (EPPI) and the expected monetary value for the best decision (EMV*).
B) EVSI is the expected monetary value with additional information (EMV´) and the expected monetary value for the best decision (EMV*).
C) EVSI is the posterior probabilities and the prior probabilities of the states of nature.
D) EVSI is the expected value of perfect information (EVPI) and the smallest expected opportunity loss (EOL*).

Question

Quizplus · Accepted Answer

EVSI represents the additional expected monetary value that could be achieved by obtaining additional information before making a decision. It is the difference between the expected monetary value of the best decision after obtaining additional information (EMV´) and the expected monetary value of the best decision before obtaining additional information (EMV*). Option A refers to the components of EVPI (not EVSI), while options C and D mention other concepts that are not directly related to EVSI.

Which of the Following Best Describes the Expected Value of Sample