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Monday, July 07, 2008

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Peter Parker

I don't understand the correction to Oberjuerge's numbers. His calculation is: (700 * 120%) or (700 * 1.2). This equals 840, which is pretty close to the "850-some" current employees.

Using 25% instead of 20% would result in 875, which is even further away from 850.

Rogier

Peter:

The problem is with this sentence of Oberjuerge's:

"If the surviving 80 percent of the staff turns up production by 20 percent … you’ve just covered your losses."

Getting to 100 percent from 80 percent takes a 25% increase, not a 20% increase.

Here's a similar example. If Oberjuerge has investments worth $100,000, and his portfolio loses 20 percent of its value, it doesn't make him whole if, a month later, the market has yoyod back up 20%. He'll need a *25% hike* to get back to the 100 grand he had.

Peter Parker

Okay, I get your point now, but I suspect he was thinking of how to get from 700 to 850 rather than from .80 to 1.00. That is how I read his comment and why I missed your point.

Rogier

Nah. He's talking about ramping up article production, not increasing staffing (NO WAY any newspaper is going to actually hire more staff right now -- the L.A. Times least of all).

gb

"...if you can't do this stuff in your head, invest five bucks in a calculator already."

hee hee hee!

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