Question

Which of the following statements regarding the Expected Value of Sample Information is true?  Select all that apply.

	A.	It represents the value of knowing in advance the result of an uncertain event.
	B.	It can be negative, but this means it would not be worth it to obtain the sample information.
	C.	It cannot be negative.
	D.	It represents the maximum amount you should be willing to pay for sample information.

Answer 1

B.	It can be negative, but this means it would not be worth it to obtain the sample information.

The expected value of sample information (EVSI) is the expected increase in utility that a decision-maker could obtain from getting access to additional sample information before making an even more informed decision. Theoretically, it can be negative which would imply that is not worth obtaining the sample information.

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