and determine what we really mean by ambiguous ideas like “training quality” or “economic opportunity.” (Chapter 4) 2. Determine what you know now. We need to quantify your uncertainty about unknown quantities in the identified decision. This is done by learning how to describe your uncertainty in terms of ranges and probabilities. (This is a teachable skill.) Defining the relevant decision and how much uncertainty we have about it helps us determine the risk involved. (Chapters 5 and 6) 3. Compute the value of additional information. Information has value because it reduces risk in decisions.
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