The expected value of perfect information is the same as:
A) maximin payoff.
B) maximax payoff.
C) the expected opportunity loss for the best alternative.
D) the expected payoff.
E) the expected payoff with perfect information.

Question

Quizplus · Accepted Answer

The expected value of perfect information (EVPI) is equal to the expected opportunity loss (EOL) for the best alternative, as it represents the maximum amount a decision-maker would be willing to pay for perfect information.

The Expected Value of Perfect Information Is the Same As