2. How does the expected value of sample information differ from the expected va

Question

2. How does the expected value of sample information differ from the expected value of perfect information? Interpret the following situations in terms of the quality of information provided by the sample:

a) The expected value of perfect information is equal to one hundred but the expected value of sample information is equal to zero;

b) The expected value of perfect information and the expected value of sample information are both equal to zero;

c) The expected value of perfect information is equal to the expected value of sample information;

d) The expected value of perfect information is lower than the expected value of sample information;

Explanation / Answer

Answer: c) The expected value of perfect information is equal to the expected value of sample information;

Since mean or expected value is a unbiased estimator, the population or perfect information and sample values are equal

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