To find the expected value of sample information (EVSI),
A)use prior and sample information probabilities to calculate revised probabilities.
B)use indicator probabilities to calculate prior probabilities.
C)use sample information to revise the sample information probabilities.
D)None of these are correct.

Question

Quizplus · Accepted Answer

The expected value of sample information (EVSI) involves using both prior and sample information to calculate revised probabilities. By combining these different sources of information, a more accurate and informed decision can be made, which is the ultimate goal of EVSI analysis. Therefore, choice A is the best option. Choices B and C are incorrect because they only consider one type of information (either prior or sample), and therefore do not provide a comprehensive analysis of the decision problem. Choice D is incorrect because EVSI does involve calculating revised probabilities based on prior and sample information.

To Find the Expected Value of Sample Information (EVSI)