Question

To find the EVSI,

a. use the EVPI to calculate sample information probabilities.
b. use indicator probabilities to calculate prior probabilities.
c. use prior and sample information probabilities to calculate revised probabilities.
d. use sample information to revise the sample information probabilities

Answer 1

To find the EVSI, use prior and sample information probabilities to calculate revised probabilities. The EVSI takes into account both prior and sample information probabilities to determine the value of obtaining additional information.

Step-by-step explanation:

To find the EVSI, you need to use prior and sample information probabilities to calculate revised probabilities. This is option c. In decision theory, EVSI stands for Expected Value of Sample Information, which is the expected value of perfect information minus the expected value of imperfect information. The EVPI (Expected Value of Perfect Information) is calculated using prior probabilities, while the EVSI takes into account both prior and sample information probabilities to determine the value of obtaining additional information.