What is the Expected Value of Perfect Information in Decision Analysis?

What is the expected value of perfect information if the expected payoff under uncertainty is $230?

A. 178

B. 202

C. 232

D. The expected value of perfect information cannot be determined based on the given information.

C. 232

The expected value of perfect information (EVPI) is a concept used in decision analysis to determine the maximum amount a decision-maker should be willing to pay for additional information. It represents the difference between the expected payoff under uncertainty and the expected payoff with perfect information.

To calculate the EVPI, we need to determine the expected payoff under uncertainty and the expected payoff with perfect information. In this case, the expected payoff under uncertainty is given as $230.

The expected payoff with perfect information is the maximum possible payoff that can be achieved if the decision-maker has perfect information about the future outcomes. Since the given information does not provide the payoffs for each possible outcome with perfect information, we cannot calculate the exact expected payoff with perfect information. Therefore, we cannot determine the expected value of perfect information based on the given information.