Discount rates and error margins

Joseph Mariathasan  |  March 13, 2018

Op-ed by Joseph Mariathasan, includes “‘You can only manage what you can measure’ is a fundamental plank of any management approach – but if too much credence is given to the measurements themselves without understanding their limitations, it can create chaos. …  Focusing on solutions based on flawed measurements is bit like the story of the actuary found on his knees searching round a lamp post in the middle of the night. When asked by a passer-by what he was doing, he replied that he was searching for his phone which he had dropped in the fields opposite. When asked why he was therefore looking under the lamp post, he replied: 'Because there is more light here.' …”

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