The expected value with perfect information is:
A) the maximum EMV for a set of alternatives.
B) the same as the expected value of perfect information.
C) the difference between the payoff under perfect information and the payoff under risk.
D) the expected return obtained when the decision maker knows which state of nature is going to occur before the decision is made.
E) obtained using conditional probabilities.

Question

Quizplus · Accepted Answer

The expected value with perfect information is the expected return obtained when the decision maker knows which state of nature is going to occur before the decision is made. This means that the decision maker has all available information and can make the best decision based on that information.

The Expected Value with Perfect Information Is