Quantitative fallacy

The quantitative fallacy is the mistaken belief that the only important inputs for decision-making are observations that can be quantified.

It leads to undervaluing, or even disregarding, essential decision-making information that cannot readily be quantified.

Leading, in turn, to poor - even disastrous - decisions.

The quantitative fallacy is sometimes known as the McNamara fallacy.

See also

• Cognitive bias
• Financial analysis
• Input
• Qualitative techniques
• Quantitative easing
• Quantitative finance
• Quantitative techniques