To Find the EVSI

question 33

Multiple Choice

To find the EVSI,

• A) use the EVPI to calculate sample information probabilities.
• B) use indicator probabilities to calculate prior probabilities.
• C) use prior and sample information probabilities to calculate revised probabilities.
• D) use sample information to revise the sample information probabilities.

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Definitions:

Positive Revenues

Positive revenues refer to the income generated from sales, services, or other business activities before any expenses are subtracted, indicating a gross inflow of economic benefits.

Resources Move

Resources Move describes the reallocation or mobility of resources (labor, capital, etc.) from one sector, location, or use to another.

Alternative Production Techniques

Different methods or processes used in the production of goods and services, often evaluated for their efficiency, cost-effectiveness, or environmental impact.

Economic Loss

Refers to the reduction in total revenue that is greater than the total cost of a business, leading to a negative profit scenario.