The expected value of perfect information (EVPI) is the
A) payoff for a decision made under perfect information
B) payoff under minimum risk
C) average expected payoff
D) difference between the payoff under perfect information and the payoff under risk
E) none of the above

Question

Quizplus · Accepted Answer

EVPI is the difference between the payoff under perfect information and the payoff under risk. It represents the maximum amount an individual should be willing to pay for additional information to make a better decision.

The Expected Value of Perfect Information (EVPI) Is the