
Chapter 19
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It has been discussed that the expected value of perfect information (EVPI) = Expected payoff
with perfect information (EPPI) – Maximum expected payoff (EP). In Table 19.22, the maximum
expected payoff value is 236. For obtaining the expected value of perfect information (EVPI), we
have to compute the expected payoff with perfect information (EPPI).
As discussed, the expected payoff with perfect information (EPPI) can be obtained by multi-
plying the maximum payoffs for each event and the corresponding probabilities and adding these
values as shown in Table 19.23.
TABLE 19.23
Computation of expected payoffs with perfect information ...