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Why is the value of information never negative?

  • A.Observations always reduce the uncertainty in the model
  • B.The utility function is bounded below by construction
  • C.Negative values are excluded by the axioms of probability
  • D.The agent may always ignore the observation it receives

Answer: D

Since the agent could act as though it had not observed, the observation can never make it worse off in expectation, so the value is zero or positive. The result assumes the agent is rational and the model correct; a mistaken model can certainly be harmed by evidence. Uncertainty reduction, bounds and axioms are not the argument. A result proved by noting that one option is always available is a pattern worth recognising, since it establishes a bound with almost no work.

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