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The Value of Information

This video presents the same text shown beside it, spoken and on screen. It adds nothing the text does not say.

State

The value of learning a fact before deciding is the gain in expected utility from deciding after it arrives — and the most the fact is worth paying for.

Show

Every sensor added, test ordered, and survey commissioned is — done honestly — this subtraction, performed before the purchase.

Watch for

A fact that would not change the action is worth exactly zero, however interesting.