Value of Information

Moving from Analyzing Datasets to Decisions in DPL

We've discussed "Big Data" within our Imperfect Information blog in the past -- with a moderately critical tone. (See Big Data and DA) When it comes to Big Data us DA folks think far too much emphasis is put on the past and how many terabytes one can unearth and not the value (or lack thereof) that the wodges of data can bring to your decisions.

Calculating the Value of Dodgy Information

Syncopation's recent Fed Rate Hike promotion not only offers you an opportunity to save money on new or upgraded licenses of DPL, it also gives us a platform to discuss important decision making principles, like the value of information.

One of the most powerful facets of a Decision Analysis approach is the ability to explicitly calculate the value of information so one can make an intelligent choice about whether or not to buy it. If you've read our blog before you should already know the following wisdom about VOI:

Would You Like Fries with that? Reflecting on the Value of Cheap Information

Larry Neal's recent column in September's Decision Analysis Today talks about the value proposition of Decision Quality (DQ), and a key point is the Value of Information (VOI). One of the most powerful things about decision analytic methods is the ability to explicitly calculate the value of information, in order to make an intelligent choice about whether to buy it.

Flipping the Arcs: An Introduction to DPL's Bayesian Revision Feature

"...we do not gain all our experience at once, but by degrees; thus our determinations continue to be assailed incessantly by fresh experience; and the mind, if we may use the expression, must always be 'under arms'."

-Carl von Clausewitz

Information Only Has Value if it Could Change Your Decision

A recent article from the Bangor Daily News provides a colorful illustration of the principle, long known to decision analysts, that the value of information is zero if the information couldn't change your decision. "Man charged after he asked police for a Breathalyzer test, was told not to drive, then drove anyway"
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