Value of information

Redirected from "Value of clairvoyance"

The value of information is a quantitative measure of the value of knowing the outcome of one or more clearly defined uncertain variables prior to making a particular decision in the context of a given decision basis. Decision theory provides a means for calculating the value of both perfect and imperfect information. The former value, informally known as the value of clairvoyance, is an upper bound for the latter. Obtaining meaningful value-of-information measurements requires an awareness of important restrictions (about the nature of free will) on the validity of this kind of analysis.

See also: basic relevance diagram, clairvoyant and clarity test.