Expected Value of Imperfect

Information
Expected Value of Imperfect Information (EVII)/
Expected Value of Sample Information (EVSI)
What is the benefit of a test with a given level of
accuracy?
EVII/EVSI = EMV (with test of given accuracy) EMV
(without test)
For Suds-Away, EVSI = 3.76 0 = $3.76M

EVPI = $5.4M
How does EVPI compare with EVSI? Does that
agree with your intuition?
1

Expected Value of Imperfect

Information
$18 Million
0.774
E

0.226

-$8 Million

0.31
$18 Million
0.087
C

EMV(with survey) =
$3.76M
EMV(without
survey) = 0
EVSI/EVII = $3.76M

G
0.913
0.69

-$8 Million

F
2

$0