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) payoff for a decision made under maximum risk.

The expected value of perfect information (EVPI) is the difference between the payoff under perfect information and the payoff under risk, and represents the maximum amount a decision maker should be willing to pay to obtain perfect information. Option A is incorrect because payoff for a decision made under perfect information is called the expected value with perfect information (EVwPI). Option B and E are incorrect because they relate to decision-making under minimum and maximum risk, respectively, which are not the same as the EVPI. Option C is incorrect because it refers to the average expected payoff, which is not the same as the EVPI.