Which of the following is NOT true about the expected value of perfect information?
A)It is the maximum amount a decision maker would be willing to pay to obtain perfect information.
B)It is the expected value under certainty.
C)It represents the expected cost of uncertainty.
D)It is the difference between the expected value under certainty and the expected value under uncertainty.

Question

Quizplus · Accepted Answer

The expected value of perfect information is not the expected value under certainty; rather, it is the difference between the expected value under certainty and the expected value under uncertainty.

Which of the Following Is NOT True About the Expected