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Author: |
Rob Stephens, Founder of CFO Perspective, Adjunct Instructor Gonzaga University |
Course Length: |
Pages: 33 ||| Word Count: 8431 ||| Review Questions: 3 ||| Final Exam Questions: 5 |
CPE Credits: |
1.0 |
IRS Credits: |
0 |
Price: |
$12.95 |
Passing Score: |
70% |
Course Type: |
Text |
Technical Designation: |
Technical |
Field Of Study: |
Finance |
Approved Audience: |
NASBA QAS - NASBA Registry |
Key Takeaways: |
This course teaches how to quantify the economic worth of information, helping professionals avoid unnecessary data gathering using expected value analysis and Bayesian logic.
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Frequently Asked Questions: |
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Description: |
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. |
Usage Rank: |
17000 |
Release: |
2025 |
Version: |
1.0 |
Prerequisites: |
None. |
Experience Level: |
Overview |
Additional Contents: |
Complete, no additional material needed. |
Additional Links: |
External: Expected Value: Definition, Formula, and Examples
Internal: Calculating Value, Information in Decision Making (desktop version)
Internal: Video version of the course (Course ID 2561)
External: Expected value - Wikipedia article explaining the concept, formula, and broader context
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Advance Preparation: |
None. |
Delivery Method: |
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Intended Participants: |
Anyone needing Continuing Professional Education (CPE). |
Revision Date: |
21-Jun-2025 |
NASBA Course Declaration: |
Participants must complete the final examination within one year of purchase and with a minimum passing grade of 70% or better to receive CPE credit unless otherwise noted on the Course History page (i.e. California Ethics must score 90% or better). After logging in click on the Course History links on your My Courses page for the Begin date and Expire date for the Final Exam. |
Keywords: |
Calculating The Value of Information: Will More Information Improve the Expected Value of a Decision - CPE course for CPAs |
Learning Objectives: |
Course Learning Objectives Upon completion of this course, participants will be able to do the following: |
Course Contents: |
Chapter 1 - Calculating The Value of Information: Will More Information Improve the Expected Value of a Decision The Value of the Value of Information Bayesian Logic Perfect Information Imperfect Information Further Insights Key Takeaways Review Questions Glossary |
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