2006-10: New approach to the rating of Knowledge Index

New approach to the rating of Knowledge Index

 Today I’m going to introduce a new method of evaluating the point of Knowledge Index. It is the accelerated rating system in which points are calculated by the percent like below. For example, when getting six points this week, my points of Knowledge Index would be X*1.01, which means my current knowledge would be increased by one percent not by one point. The reason why we can get one percent when getting a six points is that there’s weekly depreciation rate by five points. Yes I could change the current unit from ‘points’ to ‘percent’.

 Let me show you more specific examples. Suppose that the current rate(not points) is 102% and this week I got 7 points. How many percent should I get now? The answer is 102*1.02 = 104.04, shortly 104. At a glance, you could think the new rating system is not different over all. But as a matter of fact, it’s not true. Please watch another example. What if I can get one percent (or six points) during one year? One year has 52 weeks and 104 weeks means two years exactly. The result would be like the below.

After 52 weeks:

- Old point system: I would get 100+52 = 152 points.

- New rating system: I would get 100*1.01^52 = 168 points

- The advantages: 16 points (11%) higher

After 104 weeks:

- Old point system: I would get 100+ 100 = 200 points.

- New rating system: I would get 100*(1.01)^100 = 270 points.

- The advantages: 70 points (35%) higher

 This is the reason why I put the name of Accelerated rating system, which is named after the accelerated depreciation in the accounting field. The following is a sad scenarios about losing points. Unexpectedly when losing points, the declining rate is also lower. How happy stories they are!

After 52 weeks:

- Old point system: I would get 100-52 = 48 points

- New rating system: I would get 100*0.99^52 = 59 points

- The Advantages: 11 points (23%) higher

After 104 weeks:

- Old point system: I would get 100-104 = -4 points

- New rating system: I would get 100*0.99^104 = 35 points

- The Advantages: 39 points higher

 New system is more realistic in that the knowledge rate could not be below zero. It sounds weird when someone says “my knowledge fell into 5% on comparison to the initial value, 100. Extremely saying, if I study nothing, my knowledge would be ZERO after two years.

After 104 weeks:

- My knowledge would be: 100* 0.95^104 = 0.48 = ZERO

Would it be fun like a game? :-)

ps.

2006.11.24: is advised to correct wrong sentences by PJS.