**Instructions:** Use this calculator to compute, step-by-step, the Expected Value of Perfect Information for several decision alternatives under uncertainty. Please first indicate the number of decision alternatives and states of nature. Then type the corresponding payoff matrix, the probabilities associated to the states of nature and optionally the name of the decision alternatives and states of nature in the form below

## Expected Value of Perfect Information

The Expected Value of Perfect Information (EVPI) corresponds to the average value of not having uncertainty. It is fairly useful to know, because it allows to assess what is the maximum amount you should be willing for pay for perfect information.

The Expected Value of Perfect Information (EVPI) is computed as follows:

\[ EVPI = EVWPI - EMV^*\]where \(EVWPI\) corresponds to the expected value *with* perfect information and \(EMV^*\) corresponds to the maximum expected monetary value, among all the decision alternatives.

The expected value of perfect information is related to the EMV method and the EOL method, since the expected value of perfect information is the same as the minimum expected opportunity loss.

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