Traditional Culture Encyclopedia - Traditional customs - What are the advantages and disadvantages of Wall's specific gravity scoring method?
What are the advantages and disadvantages of Wall's specific gravity scoring method?
The advantage of Wall's specific gravity scoring method is simple and practical, but its disadvantages are also obvious.
First, the selection and assignment ratio of these seven indicators are unconvincing;
Second, if an indicator is seriously abnormal, it will have an illogical and significant impact on the total score. The technical defect of Wall's specific gravity scoring method is caused by the multiplication of relative ratio and specific gravity. When the financial ratio increases 1 times, its score increases 100%, while when it decreases 1 times, its score only decreases by 50%.
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