Micha Wasem

Micha Wasem Mathematical Modelling, Econometrics, Differential Geometry

Absolute vs Relative Key Performance Indicator

key performance indicator

Absolute and relative change might be insufficient to meaningfully compare and interpret the sales volume of different sales channels. The goal of this project was to single out a meaningful indicator which is determined by some economically natural axioms and which allows to compare sales channels of different scales. The indicator proves to be interesting in its own right since it uncovers a relationship between marginal functions and economic elasticity and might be interpreted as a special kind of Cobb-Douglas-Function.