W2 Test Question 8

On choosing the option last option to this question “First start with the sources of error that are least costly to fix.”, following is the feedback

"XXXXX. The cost of fixing errors should be one factor to consider, but fixing low-cost errors that have only a small potential in improving the overall error may not be the best use of your time. "

Kindly note that time is factored in cost in some way like wages incurred and opportunity cost, so the explanation doesnt make sense.

I think you are missing the point. What they are saying is suppose you have the choice between a) fixing an error that is cheap to fix but won’t help your results much or b) an error that is cheap to fix but has the potential to help your results a lot, which would be the better one to address first?

Of course this assumes a certain amount of foreknowledge of the impact of the two errors. It’s not clear how often it is realistic to expect to have that kind of visibility. But assuming you had that information a priori, the decision seems clear, doesn’t it?

Hmm… let’s look at 2 cases, one: I fix an error which could result in an additional 100 rs in revenue and the error can be fixed immediately compared to another error which can result in let’s say 300 rs in additional revenue but would take 10 years, opportunity cost of capital is 15% per year. An economically sound decision making method would probably still require an analysis of costs.

The point is simply that cost is not the only thing to consider. There is also the benefit, right? What they are talking about is “cost/benefit analysis”. That’s all they are saying: consider the benefit as well as the cost.

hmm…but benefits are like negative costs… when we talk about revenue (which is a benefit) , we would still consider the opportunity cost of revenue to decide if the decision makes sense, in finance we refer to this as net present value. somehow, i feel the explanation in the quiz is somewhat ambiguous

You’re just making this way more complicated than it needs to be. If you have two bugs that you can fix and they take the same effort to fix, but you know that one of them is just something minor that doesn’t really affect the results and the other one has serious consequences causing incorrect results, which one would it make more sense to fix if you only had the time to fix one?

That is the point of the question. Why is that ambiguous or complicated?

the thing is these quizzes are MCQ’s… its not someone asking me a question orally to gauge my level of understanding… so i’d believe we’d need to make the set as ambiguity-free as possible or move to a more application oriented approach for testing knowledge.

here, for example in your response, same effort for example is an assumption… i may also decide not to fix either bug because the opportunity cost of missing on a new feature is higher… i might instead move resources to work on a new feature

But there you go again: making it more complicated than what they actually asked. They asked you a question and you are answering a different question that you think (perhaps legitimately) is a more interesting question. These quizzes are not that big a deal. I think we are beating a dead horse here.

i dont think i am answering a different question… dont you think a robust evaluation of all costs is still an all encompassing answer rather than making assumptions to subjectively simplify the premise?

The horse is dead! Long live the horse! :laughing: