Use the information below to answer the following question(s).
Below is a decision tree for the airline revenue management.

Create a one-way table and answer the following questions.
-The expected value of perfect information (EVPI)is equal to the ________.
A)EMV with perfect information minus the EMV without any information
B)EMV with perfect information divided by the EMV without any information
C)sum of the EMV with information and the EMV without any information
D)EMV without any information minus the EMV with perfect information

Question

Use the information below to answer the following question(s).
Below is a decision tree for the airline revenue management.
  
Create a one-way table and answer the following questions.
-The expected value of perfect information (EVPI)is equal to the ________.
A)EMV with perfect information minus the EMV without any information 
B)EMV with perfect information divided by the EMV without any information 
C)sum of the EMV with information and the EMV without any information 
D)EMV without any information minus the EMV with perfect information

Quizplus · Accepted Answer

The expected value of perfect information (EVPI) is equal to the EMV with perfect information minus the EMV without any information. This is because EVPI represents the value of having perfect information over having no information, and thus is the difference between the optimal decision with perfect information and the best decision without any information.

Use the Information Below to Answer the Following Question(s)