Expected value of perfect information (EVPI) cannot be negative but may be 0 .

Question

Quizplus · Accepted Answer

EVPI represents the maximum amount a decision-maker would be willing to pay for perfect information, and it quantifies the benefit of having perfect information before making a decision. Since paying a negative amount for information is not meaningful in this context, and having perfect information cannot worsen decision-making outcomes, EVPI cannot be negative. It can be 0 if the decision made without perfect information is already optimal.

Expected Value of Perfect Information (EVPI) Cannot Be Negative but May