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

Question

Quizplus · Accepted Answer

The expected value of perfect information (EVPI) is the difference between the expected payoff under certainty and the expected value of the best act without certainty. It represents the maximum amount a decision-maker would be willing to pay for information that would eliminate uncertainty.

The Difference Between Expected Payoff Under Certainty and Expected Value