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The one way I know of to quantify something like "what's the value of preventing something bad from happening" is to use the kind of techniques described in Dou
by mindcrime 6y ago
The one way I know of to quantify something like "what's the value of preventing something bad from happening" is to use the kind of techniques described in Douglas Hubbard's How To Measure Anything[1]. Teach some experts within the customer company how to do calibrated probability assessment[2], then build a model, and run a Monte Carlo simulation[3] over that model. That gives you a way to at least loosely quantify things. It's not perfect, but for what you're doing it probably doesn't need to be.
[1]: https://www.amazon.com/How-Measure-Anything-Intangibles-Business-ebook/dp/B00INUYS2U https://www.amazon.com/How-Measure-Anything-Intangibles-Busi...
[2]: https://en.wikipedia.org/wiki/Calibrated_probability_assessment https://en.wikipedia.org/wiki/Calibrated_probability_assessm...
[3]: https://en.wikipedia.org/wiki/Monte_Carlo_method https://en.wikipedia.org/wiki/Monte_Carlo_method
- johnsmith4739 6y agoI will give this a try, looks promising