The expected monetary value without information is $2,500, and the expected monetary payoff with perfect information is $5,000.The expected value of perfect information is ____________.
A)$7,500
B)$2,500
C)$1,500
D)$2,000
E)$1,250

Question

Quizplus · Accepted Answer

The expected value of perfect information is calculated by subtracting the expected monetary value without information from the expected monetary payoff with perfect information. Therefore, $5,000 - $2,500 = $2,500.

The Expected Monetary Value Without Information Is $2,500, and the Expected