Posts Tagged ‘decision making’
Survivorship bias : Asking the uncomfortable questions
Posted by: ekta1007 on: February 10, 2010
Survivorship bias is the logical error of concentrating on the people or things that “survived” some process and ignoring those that didn’t.In other words , focusing on the victories to mask the wrong that has been done . That is to say masking the results of poor performing assets/instruments to cosmetically improve the appearance of the lot .That being said,it [...]
Opportunity cost : what have you lost anyway ?
Posted by: ekta1007 on: January 21, 2009
Opportunity cost or economic opportunity loss is the value of the next best alternative foregone as the result of making a decision. Opportunity cost analysis is an important part of a company’s decision-making processes but is not treated as an actual cost in any financial statement. The next best thing that a person can engage [...]
ekta1007
