The EVPI indicates an upper limit in the amount a decision-maker should be willing to spend to obtain information.

Question

Quizplus · Accepted Answer

EVPI stands for Expected Value of Perfect Information, which represents the maximum amount a decision-maker should be willing to pay/ spend to obtain perfect information that will eliminate all uncertainty and help them make the optimal decision. Therefore, the statement is true.

The EVPI Indicates an Upper Limit in the Amount a Decision-Maker