The efficiency of sample information is the ratio of the expected value of sample information to the
A) expected value of perfect information.
B) expected value.
C) utilization rate.
D) coefficient of optimism.

Question

Quizplus · Accepted Answer

The efficiency of sample information measures how much value is gained from taking a sample compared to having perfect information. Therefore, it is the ratio of the expected value of sample information to the expected value of perfect information (the maximum value that could be obtained if we had complete information).

The Efficiency of Sample Information Is the Ratio of the Expected