Asked by Sonia Trelles on Jun 13, 2024

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The expected value of perfect information is the same as the expected value with perfect information.

Expected Value

The projected value of a variable, calculated as an average weighted by probabilities in statistical analysis.

  • Understand the concept of expected value of perfect information and its significance.
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MS
Mikiya StukesJun 19, 2024
Final Answer :
False
Explanation :
The expected value of perfect information (EVPI) measures the maximum amount a decision-maker would be willing to pay for perfect information before making a decision, whereas the expected value with perfect information (EVwPI) calculates the expected value assuming that perfect information is available and the best decision is made based on that information. They represent different concepts and can yield different values.