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EVPI (Expected Value of Perfect Information)is a Measure of the Maximum

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EVPI (expected value of perfect information)is a measure of the maximum EMV as a result of additional information.


Definitions:

Variance

A statistical measure that captures the dispersion of a set of data points around their mean, indicating how spread out the data is.

Probability Range

A span of values within which a random variable is expected to fall, governing the likelihood of different outcomes.

Risk Premium

The return in excess of the risk-free rate of return that investors demand for choosing a risky investment.

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