I’ll say more about this later, but a proven formula from the field of decision theory allows us to compute a monetary value for a given amount of uncertainty reduction. I put this formula in an Excel macro and, for years, I’ve been computing the economic value of measurements on every variable in scores of various large business decisions. I found some fascinating patterns through this calculation but, for now, I’ll mention this: Most of the variables in a business case had an information value of zero.
