ROI = Return on Investment. Most people in practice calculate that in excel as a percentage of profit over their capital investment.
Smart business people know there's more important things than a dimensionless number, but hey, Peter Principle and "math is hard." See Black-Scholes and the 2008 recession for how wrong that can go.
I used to do math tutoring for economics students. Boy, that was an eye-opener! I had to explain over and over what independent variables meant, and how that affected for example derivatives. As bad as p-hacking and the social sciences.
Econ Student: "Can I just plug these lists of numbers in the formula and write down the answer?"
Me: "What are the numbers measuring? Are they independent?"
Here's a link: https://www.investopedia.com/terms/r/returnoninvestment.asp
ROI = Return on Investment. Most people in practice calculate that in excel as a percentage of profit over their capital investment.
Smart business people know there's more important things than a dimensionless number, but hey, Peter Principle and "math is hard." See Black-Scholes and the 2008 recession for how wrong that can go.
https://en.wikipedia.org/wiki/Black%E2%80%93Scholes_model
I used to do math tutoring for economics students. Boy, that was an eye-opener! I had to explain over and over what independent variables meant, and how that affected for example derivatives. As bad as p-hacking and the social sciences.
Econ Student: "Can I just plug these lists of numbers in the formula and write down the answer?"
Me: "What are the numbers measuring? Are they independent?"
Econ Student: "No idea."