This assumption translates into the existence of a linear ordering of these decisions and uncertainties such that; Consider cases where the decision-maker is enabled to know the outcome of some additional uncertainties earlier in his/her decision situation, i.e., some ui are moved to appear earlier in the ordering.
[2] There are four characteristics of VoI that always hold for any decision situation: VoC is derived strictly following its definition as the monetary amount that is big enough to just offset the additional benefit of getting more information.
In other words; VoC is calculated iteratively until A special case is when the decision-maker is risk neutral where VoC can be simply computed as This special case is how expected value of perfect information and expected value of sample information are calculated where risk neutrality is implicitly assumed.
[4] This is typical of hiring-rehiring decisions or value chain decisions for which assembly line components must be replaced if erroneously ordered or installed: E = gk + (1-g)(k'+m+E) F = g(k+c) If the consultant is imperfect with frequency f, then the consultant cost is solved with the probability of error included: F = g(k+c)(1-f) + g(k+c+F)f + (1-g)(1-f)(k+c+F) + (1-g)f(k'+c+m+F) VoI is also used to do an inspection and maintenance planning of the structures.
analyze to what extent the value associated with the information collected during the service life of engineered structures, for example, inspections, in the context of integrity management, is affected by not only measurement random errors but also biases (systematic errors), taking the dependency between the collections into account[5]