The _______________________ is the difference between the expected payoff that would have been realized had the best alternative action been selected if we know which state of nature has occurred and the expected payoff under risk.
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 perfect information measures the difference between the expected payoff if we knew which state of nature had occurred and the expected payoff under risk. It helps to determine the value of obtaining additional information before making a decision. The other options, maximax criterion, maximin criterion, expected utility, and expected value of sample information do not directly measure this difference.

The _______________________ Is the Difference Between the Expected Payoff That