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Review a promising collection initiative

Check the base rate before reacting · Fictional case

The situation

Out of 50 comparable collection initiatives, 15 hit their target. The sponsor cites four successful pilots from a different region without reporting failures.

Your task

What baseline should the team use and what evidence could update it?

Reveal step-by-step solution
  1. Set up the problem

    Use all 50 comparable initiatives. Observed success rate = 15 ÷ 50 = 30%.

  2. Work through the numbers

    Check the sponsor’s selection process and denominator. Compare regions, customer mix and implementation.

  3. Interpret the result

    Start at the 30% outside view. Move it only after getting evidence on comparability and the full pilot outcomes.

What to remember

Name the reference class and check whether failed or abandoned attempts were included.

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