The _______________________ is the difference between the expected payoff of sampling and the expected payoff based on expected monetary criterion and prior probabilities.
A)Maximax criterion
B)Maximin criterion
C)Expected utility
D)Expected value of perfect information
E)Expected value of sample information

Question

Quizplus · Accepted Answer

The expected value of sample information (EVSI) measures the difference between the expected payoff of sampling and the expected payoff based on expected monetary criterion and prior probabilities. Therefore, E is the correct answer. The other options, such as maximax criterion, maximin criterion, and expected utility, are related to decision-making criteria, but not specifically to the measurement of the difference in expected payoffs. The expected value of perfect information (EVPI) is also related to decision-making, but it measures the difference between the expected payoff with perfect information and the expected payoff based on expected monetary criterion and prior probabilities. Therefore, it is not the correct answer to this question.

The _______________________ Is the Difference Between the Expected Payoff of Sampling