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Error in Calculation of Costs and Benefits [Quant & Judgement]

Whiteshield Advisory Case: Regulating Artificial Intelligence in the GCC
New answer on Feb 21, 2024
3 Answers
293 Views
Marvin asked on Jan 09, 2024

Hey,

I just wanted to remark, that this case has en error in calculating the total costs of the conformity assessment. If you multiply the existing 2,457,000 high risk HR systems with the $200,000 of costs per audit per system it results in total costs of 491,4 B$.
Since 491,4 B$ is greater than the potential 1 B$ of costs to the economy, it is a no-brainer to advise against the implementation of the mandatory conformity assessment.
The rest of the reasoning provided in the case solution remains true and consistent, despite this calculation error.

Cheers

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Best answer
Charlotte
Premium
Skilled
replied on Feb 21, 2024
Coaching Program Manager at PrepLounge

Hello Marvin,

Thank you for your question about the case and for pointing out an error to us. 

The author has now corrected the case. Feel free to look at it again.

 I wish you much success with your further preparation. 

Kind regards, 

Your PrepLounge team

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10
Ian
Expert
Content Creator
replied on Jan 10, 2024
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hey Marvin,

Appreciate you flagging this! Also, just a note that with 3.3 stars it's likely this case has a few errors/isn't great. Not a bad idea to stick with higher rated cases :)

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Cristian
Expert
Content Creator
replied on Jan 10, 2024
#1 rated MBB & McKinsey Coach

Hi Marvin,

Yes, this happens sometimes with cases. Good for you to note it - this way the author can make the necessary adjustments. 

Best,
Cristian

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