Decision Analysis Flashcards
1
Q
How do you find the expected monetary value EMV
A
Multiply the different possible payoffs by their probabilities and sum
2
Q
What is EVPI
A
Expected value of perfect information
EVPI = Money that I make with new information
- money that I make without it
= EMV w/ PI - EMV.
3
Q
What is EVSI
A
Expected value of sample information (EVSI) is the EMV with sample/imperfect information minus the EMV without sample
information.
