Value of Information

The Value of Information (VOI) is the benefit gained from obtaining additional data before making a decision. It helps determine whether gathering more information is worth the time, effort, and cost, by showing how much it could improve the decision-making process. If the new information significantly reduces uncertainty and leads to better outcomes, its value is high. Conversely, if it has little impact, the value is low. Essentially, VOI helps prioritize actions by weighing the advantages of gaining insights against the expenses involved.