Quantify the economic value of information.

Learn how much to invest in data to boost your decision's expected outcome.

Calculating the Value of Information

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MOST POPULAR

Get this course and all other CFO Perspective courses along with downloadable tools and access to Rob for only $290/year as part of a FAST membership.

FAST Member? Click here for instant access.

Navigating business decisions in an uncertain world requires knowing when and how much to invest in gathering information. This course provides you with the essential tools to quantify the economic worth of data, ensuring you invest wisely and avoid costly analysis paralysis.

You will learn foundational concepts like Expected Value (EV) analysis, a powerful method for distilling complex outcomes into a single comparable number. Explore how Bayesian logic allows you to update your probabilities based on new information, moving from prior beliefs to more informed posterior probabilities. Master the use of decision-making tools such as Decision Trees and Influence Diagrams to structure problems, visualize potential scenarios, and calculate the expected value of different strategic paths.

Beyond the theoretical, this course delves into calculating the value of both perfect and imperfect information, helping you determine the maximum you should pay for data sources like market tests or expert opinions. Understand the difference between the value of information (reducing uncertainty) and the value of control (increasing probabilities of favorable outcomes). By the end, you will be equipped to identify which uncertainties are most valuable to reduce and make more profitable, data-driven decisions.

Learn to make informed choices by understanding what information is truly worth.

What You'll Learn ...

  • Bayesian Logic: Quantify how new information can change your current probabilities of success or failure.
  • Expected Value: Distilling complex outcomes into a single number to pick the decision with the highest expected value.
  • Decision Trees: Map out complex decisions to create the framework for calculating the value of information.
  • The Value of Perfect and Imperfect Information: Both calculations can be valuable to assess whether gathering more information is worth the cost.
  • Further Insights: Practical and strategic applications from the calculation of the value of information.

Course Outline

The Value of the Value of Information
Bayesian Logic
Perfect Information
Imperfect Information
Further Insights
Key Takeaways

Are you a CPA? Get CPE Credit for this course.

Let me be your guide

I’m Rob Stephens, founder of CFO Perspective. CFO Perspective provides continuing education courses for CPAs as well as financial management courses for business advisors and staff. During my career, I’ve been the CFO, SVP of Finance, or Director of Operations of companies from just a few employees to $3 billion in assets and hundreds of employees. 

Join with NO RISK!

There is no risk to you. I think you'll be impressed with what you receive, but if you're not, you can quit within the first month. Get a full refund in your first 30 days if it's not everything you wanted.

Will Investing in Information Reward You With Even Higher Profits?

Learn how to calculate the value of information.

- OR -

MOST POPULAR

Get this course and all other CFO Perspective courses along with downloadable tools and access to Rob for only $290/year as part of a FAST membership.

The value of information course is one of the courses you get with a FAST membership.

FAST (Finance and Strategy Toolkit) is a membership program that gives you resources for better strategic financial management. You get all the CFO Perspective courses. Get direct access to me as well as tools for improved decisions that can lead to superior business performance. 

The right tools can save you time, reduce your stress, and improve your effectiveness.

FAST Member? Click here for instant access.

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