The difference between expected payoff under certainty and expected value of the best act without certainty is the
A)expected net present value.
B)expected value of perfect information.
C)expected rate of return.
D)expected monetary value.

Question

Quizplus · Accepted Answer

The difference between expected payoff under certainty and expected value of the best act without certainty is known as expected value of perfect information (EVPI). EVPI represents the value of having complete information about the outcome of a decision before acting. Therefore, the best choice is B, expected value of perfect information.

The Difference Between Expected Payoff Under Certainty and Expected Value