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Well then you need to estimate the distribution of those results. If it's uniform between those numbers then it's an expected loss, and whether it's worth spend
by ikeboy 8y ago
Well then you need to estimate the distribution of those results. If it's uniform between those numbers then it's an expected loss, and whether it's worth spending a significant amount of money on information depends on whether the company can afford it. If, say, the value of information was 200k in expectation, that doesn't imply that the company should spend anywhere near that amount on information, because they should be somewhat risk averse if they can't spread the risk over many such decisions.