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In business and for engineering economics in both industrial engineering and civil engineering practice, the minimum acceptable rate of return, often abbreviated MARR, or hurdle rate is the minimum rate of return on a project a manager or company is willing to accept before starting a project, given its risk and the opportunity cost of forgoing other projects. [1]
A thing is acceptable if it is sufficient to serve the purpose for which it is provided, even if it is far less usable for this purpose than the ideal example. A thing is unacceptable (or has the characteristic of unacceptability ) if it deviates so far from the ideal that it is no longer sufficient to serve the desired purpose, or if it goes ...
Closely related terms are the rejectable quality limit and rejectable quality level (RQL). [1] [2] In a quality control procedure, a process is said to be at an acceptable quality level if the appropriate statistic used to construct a control chart does not fall outside the bounds of the acceptable quality limits. Otherwise, the process is said ...
In general, acceptance sampling is employed when one or several of the following hold: [2] testing is destructive; the cost of 100% inspection is very high; and; 100% inspection takes too long. A wide variety of acceptance sampling plans is available. For example, multiple sampling plans use more than two samples to reach a conclusion.
Example choice-based conjoint analysis survey with application to marketing (investigating preferences in ice-cream) Conjoint analysis is a survey-based statistical technique used in market research that helps determine how people value different attributes (feature, function, benefits) that make up an individual product or service.
Cost-plus pricing is common and there are many examples where the margin is transparent to buyers. [4] Costco reportedly created rules to limit product markups to 15% with an average markup of 11% across all products sold. [5]
Churn rate + retention rate = 100%. Most models can be written using either churn rate or retention rate. If the model uses only one churn rate, the assumption is that the churn rate is constant across the life of the customer relationship. Discount rate, the cost of capital used to discount future revenue from a customer. Discounting is an ...
The rate of diffusion is the speed with which the new idea spreads from one consumer to the next. Adoption is the reciprocal process as viewed from a consumer perspective rather than distributor; it is similar to diffusion except that it deals with the psychological processes an individual goes through, rather than an aggregate market process.