ReliaSoft’s Reliability ROI: Difference between revisions

Latest revision as of 00:37, 22 August 2012

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-ReliaSoft's Reliability Return on Investment(RRROI or R3OI)metric was
-First, traditinal Return On Investment (ROI) is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. In general to calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; and the result is expressed as a percentage or a ratio.
-<math>\[ROI=\frac{Gain-Cost}{Cost}\]math>
-The return on investment formula:
-In the above formula "gains from investment", refers to the proceeds obtained from selling the investment of interest.  Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken.