EVPI equals the expected regret associated with the minimax decision.

Question

Quizplus · Accepted Answer

EVPI is the expected value of perfect information, which is the difference between the expected value of the optimal decision with perfect information and the expected value of the optimal decision without perfect information. The minimax decision is the decision that minimizes the maximum possible regret, which is the difference between the payoff of the optimal decision and the payoff of the worst possible decision. Therefore, EVPI equals the expected regret associated with the minimax decision.

EVPI Equals the Expected Regret Associated with the Minimax Decision