EVPI.10A

EVPI.10A - decision has to be made. How much profit could...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Conclusion: EPPI = Expected Profit with Perfect Information - EMV = Expected Profit with Uncertainty (Expectected Monetary Value) EVPI = E xpected V alue of P erfect I nformation ( EVPI) E xpected V alue of P erfect I nformation ( EVPI) Suppose all the uncertainty was removed. That is, you now know the state of nature before the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: decision has to be made. How much profit could you expect to make under certainty? In Class In Textbook EPPI EVwPI (with Perfect Information) EMV EVwoPI (without Perfect Information) EVPI EVPI The notation we use in class is a little bit different than that used by our textbook....
View Full Document

Page1 / 2

EVPI.10A - decision has to be made. How much profit could...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online