September 2018
Intermediate to advanced
392 pages
10h 16m
English
Stakeholders’ view
The board, however, also consulted eight important stakeholders, who all stated that they too consider the hypothesis likely to be true. So again, what is the likelihood of this evidence? We would argue that P(E|Htrue) and P(E|Hfalse) are similar to those of the experienced professionals, as the stakeholders’ judgement too is prone to cognitive biases.15 Again, we can use Bayes’ Rule to calculate the new posterior probability by using the previous posterior as a prior (Table 12.7).
Table 12.7
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Prior probability |
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The probability of the hypothesis – that an ethnically diverse workforce would increase the company’s performance ... | ||
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