base rates
Minimum pay levels
Base rates are the underlying frequencies or probabilities of something occurring in a population before other factors are considered.
In statistics and reasoning, ignoring base rates leads to flawed conclusions—if a disease affects one in a million people, even a highly accurate test will produce mostly false positives.
The base rate of violent crime is actually quite low.
In finance, a base rate is a benchmark interest rate set by central banks that influences other lending rates.
- percentageProportion out of hundred
- mortgagesLoans secured by property
- anchor pointFixed securing location
- federal reserveNational monetary authority holdings
- investmentsAssets bought for profit
behavioral economics · risk assessment · inflation · central banks · pricing models · cost analysis · consumer protection · dynamic pricing · creative destruction · energy tariffs · invisible hand · Bayesian · load management · inflations · uncertainty principle · percentages · percentages · inflations
- mental modelsanchoring, confirmation bias, hindsight bias, Occam's razor, first principles
- phone ratesphone bill, long distance, roaming charges, toll charges, roaming fees
- Utilities Regulationpublic hearings, state boards, commissions, ratepayers, utility fees
- insurance termspremiums, full coverage, monthly premium, deductibles, payout