cheet sheet for final 2

cheet sheet for final 2 - (compare to EMV) How much did it...

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EMV=Expected Monetary Value=expected value of weighted average of all possibilities (weight.  Aver. Of setup times priors) EVPI= Expected Value of Perfect Information=Vstar of EMV-max of EMV (Increase of expected  value that occurs by having perfect info in advance. Compare to cost of info. EV/SI= expected value given sample information =% times max of given info=has gone up 
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Unformatted text preview: (compare to EMV) How much did it go up? EVSI=Expected Value of sample information=EV/SI-EMV ENGSI=Expected Net Gain of Sample Information =value of EVSI minus its cost(value exceeds cost=net gain) EMV*=Expected value given perfect info free minus cost of info=because EMV* is more than EMV, it is beneficial to BUY the Info (If less, it is not worth it to buy)....
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This document was uploaded on 02/14/2011.

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