02. What should you ask and look for in trying to evaluate the veracity and usefulness of a particular Benefit- Cost Analysis? a) Are all the costs and benefits identified? – Can you identify some that are missing? b) Are the methods used to valuate costs and benefits reasonable? c) Do the conclusions of the analysis confirm what you know and think about the issue examined? d) How reasonable are the estimated probabilities of occurrence of the benefits and costs? e) Are the values of benefits and costs in the future properly discounted using a reasonable rate? f) Are all the assumptions made in the analysis stated explicitly? – Can you identify some implicit assumptions that are not stated and may be important? g) Are the assumptions reasonable? h) Do you like or trust the person or institution conducting the analysis?
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02. What should you ask and look for in trying to evaluate the veracity and usefulness of a particular Benefit- Cost Analysis?
a) Are all the costs and benefits identified? – Can you identify some that are missing?
b) Are the methods used to valuate costs and benefits reasonable?
c) Do the conclusions of the analysis confirm what you know and think about the issue examined?
d) How reasonable are the estimated probabilities of occurrence of the benefits and costs?
e) Are the values of benefits and costs in the future properly discounted using a reasonable rate?
f) Are all the assumptions made in the analysis stated explicitly? – Can you identify some implicit assumptions that are not stated and may be important?
g) Are the assumptions reasonable?
h) Do you like or trust the person or institution conducting the analysis?
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