412DA-EngEVPI-info[1] - determine the Expected Value with...

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35 Expected Value of Perfect Information (EVPI) What are expected payoffs under certainty and under risk? EVPI = Expected Outcome with Perfect Information - Expected Outcome without Perfect Information = EVwPI – Max EMV • How to find EVwPI? We can re-draw the decision tree to
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Unformatted text preview: determine the Expected Value with Perfect Information – Move the event before the decision – Although technically the event happens after, our advanced knowledge of the outcome lets us make the decision as if the event had already happened...
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