Difference between revisions of "Value of information"
From Testiwiki
(→Rationale: link to en:Expected value of perfect information added) |
(VOI score added) |
||
| Line 27: | Line 27: | ||
==Result== | ==Result== | ||
| + | |||
| + | ===Procedure=== | ||
VOI = E(Max(U(d<sub>i</sub>,θ))) - Max(E(U(d<sub>i</sub>,θ))), | VOI = E(Max(U(d<sub>i</sub>,θ))) - Max(E(U(d<sub>i</sub>,θ))), | ||
| Line 35: | Line 37: | ||
* [[Analytica]] file for [[:Image:VOI analysis.ANA|calculating value of information]] | * [[Analytica]] file for [[:Image:VOI analysis.ANA|calculating value of information]] | ||
| + | |||
| + | ==How to use the method== | ||
| + | |||
| + | ===Value of information score=== | ||
| + | |||
| + | The VOI score is the current expected value of perfect information (EVPI) for that variable in an assessment where it is used. If the variable is used is several assessments, it it the sum of EVPIs across all assessments. | ||
| + | |||
| + | ==See also== | ||
==References== | ==References== | ||
<references/> | <references/> | ||
Revision as of 04:53, 18 March 2009
This page is a method.
The page identifier is Op_en2480 |
|---|
| Moderator:Nobody (see all) Click here to sign up. |
|
Give your opinion to the peer rating of the content of this page. |
| Upload data
|
- Value of information (VOI) in decision analysis is the amount a decision maker would be willing to pay for information prior to making a decision.[1]<section end=glossary />
Contents
Scope
How can value of information be calculated?
Definition
Input
To calculate value of information, you need
- a decision to be made,
- an outcome indicator to be optimised,
- an optimising function to be used as the criterion for the best decision,
- an uncertain variable of interest (optional, needed only if partial VOI is calculated for the variable)
Output
Value of information, i.e. the amount of money that the decision-maker is willing, in theory, to pay to obtain a piece of information.
Rationale
Result
Procedure
VOI = E(Max(U(di,θ))) - Max(E(U(di,θ))),
where E=expectation over uncertain parameters θ, Max=maximum over decision options i, U=utility of decision d.
Management
How to use the method
Value of information score
The VOI score is the current expected value of perfect information (EVPI) for that variable in an assessment where it is used. If the variable is used is several assessments, it it the sum of EVPIs across all assessments.
