Information Evaluation is the process of determining the value of information. This, in turn, requires clearly defined goals. Because information has value only to the extent it can be applied to goals, it is actually impossible assess the value of information without them.
This is analogous to the way actions can only be evaluated as good or evil with reference to a goal, the implicit one being human happiness.
The goals to which information can be applied may be sustainment or improvement, continuous or specific achievement.
For example, if your goal is to enjoy hiking with other people near Seattle, the following information immediately becomes applicable and thus valuable:
– Reviews of nearby Good hiking trails
– Reviews of hiking equipment
– Sales at stores that sell hiking equipment
– Names of groups that organize hikes
What Makes Information Valuable
In some ways, the quality of your life depends on the efficiency with which you process and manage information. It determines whether and how quickly you can find music or movies you enjoy, or investments that will increase in value, or a life partner who will be compatible. It determines, to a degree, how your relationship will develop (Can you remember her birthday? Can you think of creative date and gift ideas?) It determines whether you will find a home you like, how good of a loan you can find, and so on. It affects all your purchases: how well you choose and how much you pay.
Some information is intrinsically valuable because it is beautiful. For example, music you like, artwork you like, or pictures of beautiful things.
Some information is valuable because it can be applied in a way that moves you closer to some goal. For example, it helps you make better investment decisions, or helps you make better career decisions.
Some information is valuable because it helps you predict the future.
In a general sense, information represents or models some portion of the world. By incorporating it into your mental model, you can develop a plan that will work when applied to the real world. That is, provided the information is accurate and complete.
The value of such information is determined by its applicability to your goals, but if but you’re unclear about your goals, it will be difficult to evaluate any given piece of information.
One problem is, you only have so much time, energy, and money. That means you can only make good progress toward a few goals at time. If you try to achieve too many goals at once, you can devote only a small share of your resources to each of them. Which means each one takes longer to reach. But the world is constantly changing. So if your progress is too slow, then the information you’ve collected to help you reach your goals will go become obsolete. That is, it will no longer reflect reality.
For example, let’s say you’re trying to simultaneously reach 10 different goals, one of which is to select and purchase a cell phone. So while you’re out shopping, you pick up some brochures describing various phones and calling plans. But because you’re trying to reach so many goals at once, you can devote only a small portion of time to selecting a phone. Months pass, and the phones in your brochure are replaced by newer models, the calling plans are changed, and the information you’ve collected is now obsolete.
This is an important point: time and information are interrelated. The more time passes, the more information tends to lose its value, because (usually) the less and less it describes the current state of the world.
The value of information is highly situational and context-dependent. And situations are often changing rapidly.
Examples of information that is valuable in context:
Knowing the way back to Camp 4. Had Jon Krakauer’s climbing partners known the way back to Camp 4 after summiting Everest, one of them would not have died and another would not have had his arm amputated after frostbite. They were only a few hundred meters from the safety of the tents, but in the snowstorm they were disoriented and visibility was very poor. This is an example of how geographic or locational information can be very valuable.
Knowing which company’s earnings are likely to rise faster than analysts’ expectations. This is an example of using information to make accurate predictions, in fact more accurate than most others are able to make.
To Consolidate
Highly-detailed, specific information is either extremely useful or extremely useless, depending on the situation.
No information is important in itself. Only its contribution to or detraction from some reference goal determines its relative importance.
Time spent handling information should be in direct proportion to its importance to you. Its importance varies in proportion to its potential effect on your level of happiness.
The idea of essential, unsought information may very well be a myth. At any time in your life, even if optimally lived, there is a relatively small amount of information that is very useful to you, and a large amount that is not. And no piece of information is intrinsically important or essential. That is determined by the goals you’re trying to reach.
It may be that every piece of information is important in some situation. The trick is collecting that information that will be most useful most often.
Some bits of information that seem trivial when isolated reveal themselves to be extremely important when incorporated into the proper framework.
Information is only as valuable as its applicability to a goal. A goal is only as valuable as the the degree to which it increases your dynamic happiness.
Ignorance of which facts is most harmful?
All useful information is true, but not all true information is useful.
The most important information is that which affects you happines the most, directly or indirectly. That is, which blocks loss of happiness or promotes its gain.
The most important information may be that whose lack results in the greatest decrease in one’s happiness.
Questions to help evaluate information:
• How soon will this information increase my happiness?
At any time, there is only a small percentage of all the information in the world that can increase your short-term happiness the most. It is that subset of information that you ought to be most interested in.
The ultimate purpose of all information is to increase your happiness. The more and sooner it does that, the more valuable it is.
Levels of quality of information produced by others: (from worst to best)
1. False and useless
2. Would have been useful, but it is false
3. True, but not useful
4. True and useful, but I already knew it, or it’s obvious
5. True, useful, and I didn’t know it or it wasn’t obvious to me.