The expected value of perfect information is:
A)-28
B)0
C)10 5
D)19
E)23

Question

The expected value of perfect information is:
A)-28 
B)0 
C)10 5 
D)19 
E)23

Quizplus · Accepted Answer

The expected value of perfect information is the difference between the expected value with perfect information and the expected value without perfect information. In this case, the expected value with perfect information is 105, and the expected value without perfect information is 77. Therefore, the expected value of perfect information is 105 - 77 = 28.

The Expected Value of Perfect Information Is