1. A method for characterizing a subterranean formation, the method comprising: selecting model parameters of a linear model that predicts physical observations of the formation; determining a prior model probability density relating to the model parameters of the linear model, the prior model probability density including (i) a mean prior model, and (ii) a first covariance matrix describing uncertainty around the mean prior model; determining a second covariance matrix relating to the model parameters of the linear model and describing uncertainty around anticipated observation noise; and iteratively adding a select candidate physical observation to a set of physical observations of the formation as predicted by the linear model based on D-optimality augmented criteria using a processor, which involves determining a sensitivity matrix for the model parameters and the set of physical observations based on a determinant derived from the first covariance matrix and components of the second covariance matrix that are associated with the select candidate physical observation; and configuring survey equipment that characterizes the formation using the set of physical observations.