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Faulty information leads to poor decisions

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Find an example of a recent major decision (whether in business, politics, etc.) that was made based on assumptions that turned out to be incorrect.

Explain why at least 2 assumptions for this decision were incorrect, and explain what led to their use as a basis for the decision.

What would you have done to test the validity of the assumptions? What specific kinds of research, testing, or surveying might you have performed if you were the decision maker in a similar situation in the future? What, if anything, would you do differently about the assumptions being made?

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Solution Summary

Cases where faulty information led to poor decisions on the part of a review board which had many of their decisions overturned.

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Find an example of a recent major decision (whether in business, politics, etc.) that was made based on assumptions that turned out to be incorrect.

http://www.ae-ei.gc.ca/eng/board/favourable_jurisprudence/penalties.shtml

This web site from Canada contains summaries of cases of unemployment benefits paid to persons who were judged to be misrepresenting their state of unemployment in order to gain fraudulent benefits, and the decisions and penalties that the review board imposed upon these claimants, or defendants who misrepresented their unemployed status.

Explain why at least 2 assumptions for this decision were incorrect, and explain what led to their use as a basis for the decision.

The cases show that misrepresentation of the facts caused these persons to be assessed penalties ...

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