Reply To: Lesson 5-3: Notice & Name – Absolute vs. Relative Thinking – Discussion

[Anne Sheeter]

using the earlier example in unit 1 about the $100 that became $400 and the $1000 that became $1500, in additive or absolute thinking the first earned $400 and the second earned $500. In multiplicative thinking the first earned four times as much as it started with (or 400%) while the second earned 1 1/2 times what it started as or 150%. Also you are risking 1/10 less in the first scenario which is also multiplicative thinking

[Anne Sheeter]

using the earlier example in unit 1 about the $100 that became $400 and the $1000 that became $1500, in additive or absolute thinking the first earned $400 and the second earned $500. In multiplicative thinking the first earned four times as much as it started with (or 400%) while the second earned 1 1/2 times what it started as or 150%. Also you are risking 1/10 less in the first scenario which is also multiplicative thinking