We related EVPI to the value of an envelope that contains the true ultimate outcome. We can extend this concept to “less than perfect” information. For example, in the Acme problem suppose that we...

We related EVPI to the value of an envelope that contains the true ultimate outcome. We can extend this concept to “less than perfect” information. For example, in the Acme problem suppose that we could purchase information that would tell us, with certainty, that one of the following two outcomes will occur: (1) the national market will be great, or (2) the national market will not be great. Notice that outcome (2) doesn’t tell us whether the national market will be fair or awful; it just tells us that it won’t be great. How much should Acme be willing to pay for such information?