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A very different behavior occurs when the task is to generate exact values for a business case, especially one where the estimator has a stake in the outcome, as opposed to a calibrated estimator providing an initial 90% confidence interval (CI). Sitting in a room, one or more people working on the business case will play a game with each estimate. Forced to choose exact values, no matter how uncertain or arbitrary, the estimators ask: “How much should this value be to be agreeable to others and still be sufficient to prove my (predetermined) point?” It is almost as if the terms “consensus” ...more
How to Measure Anything: Finding the Value of Intangibles in Business
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