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 is the difference between the expected payoff under perfect information and the expected payoff under risk. It helps to determine the maximum amount that a decision-maker would be willing to pay for additional information. The other options (A, B, C, E) are decision-making criteria that do not pertain to the difference between expected payoffs with and without perfect information.

The _______________________ Is the Difference Between the Expected Payoff That