Question

Consider the expected value of perfect information (vpi) of observing some node in an arbitrary decision network. which of the following are true statements? a. The expected value of perfect information (EVPI) is always non-negative.

b. The expected value of perfect information is the same for all nodes in a decision network.
c. The expected value of perfect information can be negative in some cases.
d. The expected value of perfect information is dependent only on the probability of the events at the observed node.

Answer 1

The expected value of perfect information (EVPI) is always non-negative, it is not the same for all nodes in a decision network, and it is not solely dependent on the probability of events at the observed node.

Step-by-step explanation:

When considering the expected value of perfect information (EVPI) within a decision network, we can evaluate the truth of the presented statements.

Firstly, the EVPI is indeed always non-negative. This is because knowing the perfect information can never decrease our expected value; at worst, it will have no value if it doesn't change our decision, but it won't be negative.

Secondly, the EVPI is not the same for all nodes in a decision network as each node may have different levels of influence on the decision-making process and potential outcomes.

Lastly, the EVPI is not solely dependent on the probability of events at the observed node. It also depends on how that information impacts the decision being made, that is, how much better we can make our decisions with the perfect information at that node.