The Accounting Review Vol. 50 No. 2 1975
Toward a Model for Human Resource Valuation: A Reply.
Abstract
This article presents the authors' views on the criticism of their article which evaluated human resource valuation models and presented a new model based on the actuarial concept of homogeneous group and Markov analysis, published in an earlier issue of the journal "The Accounting Review." It is important to note that there are two kinds of products for two K-element column vectors, namely, the scalar product and the vector product. According to the authors, it should also be noted that the scalar product of two column vectors is a column vector, but the vector product of two column vectors results in a scalar. The authors feel that a scalar product is more appropriate, and their equation is preferable to the one suggested in the criticism of their article. The accuracy of a solution depends on two components, namely, the accuracy of the model's parameters and the accuracy of the computational procedures. In the human resource valuation model, two groups of parameters used are, the rank transitional probabilities and the economic values of unit period of service. All these have to be estimated statistically.
- DOI
- 10.2308/tar-4506115
- Volume
- 50
- Issue
- 2
- Pages
- 348-350
- Language
- en
- Sources
- openalex crossref