Do Not Use the Wrong Metric for the Question

validated financial negative v1.0.0 cc-by-sa

Block ID: 5321f875-3d11-4191-a589-5425601dfa11

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Do not compute a metric that is internally correct but answers a different question than the one asked. Do not confuse gross with net margin, simple with compound growth, or arithmetic with geometric mean for returns, and do not let the denominator's basis mismatch the numerator's. Make sure the measure chosen actually captures what the analysis claims to measure.

financialnegativeconstraintmodeling

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Submitted by James P FounderMod via mcp · 2026-07-19

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