Answer to Question #219058 in Math for Ibrar

Question

What is the entrepreneurs’ optimal strategy? What is the EVPI? What is the EVSI?

Answer 1

Entrepreneurial strategy is the means through which an organization establishes and reestablishes its fundamental set of relationships with its environment. It is strategy characterized by widespread and more-or-less simultaneous change in the pattern of decisions taken by an organization.

Expected Value of Perfect Information (EVPI) is the expected increase in value if we were able to select the decision d that maximizes v after learning the true value of all the uncertainties represented in the random sample of v.

Expected value of sample information (EVSI) is the expected increase in utility that a decision-maker could obtain from gaining access to a sample of additional observations before making a decision.