i)EVPI = Expected value under conditions of certainty-Optimal decision under conditions of uncertainty
Ii) Three regret strategies that are often used are Maximin, Maximax, and Minimax
Iii) Rankings of the decision alternatives are frequently not highly sensitive to changes in the applied probabilities within a plausible range.
A) (i), (ii) and (iii) are all correct statements
B) (i) is a correct statement but not (ii) or (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) All statements are false

Question

Quizplus · Accepted Answer

(i) is a correct statement because EVPI is the expected value of perfect information, which is the difference between the expected value under conditions of certainty and the optimal decision under conditions of uncertainty. (ii) is a correct statement because the maximin, maximax, and minimax regret strategies are three common strategies for making decisions under uncertainty. (iii) is a correct statement because the rankings of decision alternatives are often not highly sensitive to changes in the applied probabilities within a plausible range.

I)EVPI = Expected Value Under Conditions of Certainty-Optimal Decision Under