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mLine 339:
Line 339: − + − The Error Check column will generate a warning message if you enter a frequency greater than 12. Review this message and consider how else you might be able to model the activity, and consult your TBS analyst if you are unsure what to do. + + +
→Annual Frequency
# Frequency = 4; Time spent per occurrence = 300 hours
# Frequency = 4; Time spent per occurrence = 300 hours
All of the above methods will result in 1,200 hours being spent on the activity per year for businesses that are in the market at the start of the year. However, since the frequency determines the number of periods, it also determines at which point new entrants will enter the market and therefore begin to incur the cost. Stakeholders who enter the market partway through the year would not incur the cost as many times as those who were already there at the start of the year. With frequency = 1, all new entrants are assumed to join the market and incur the ongoing cost at the end of the year, meaning that all new entrants would spend 1,200 hours on the activity. This implies that the undiscounted impacts will be different depending on the selected frequency. Also, with 1,200 periods per year, every subsequent period will be discounted to a slightly greater extent to bring it back to the present-value base year. Compared to using a frequency of 1 and a time spent per occurrence of 1,200 hours, using a frequency of 1,200 and a time spent per occurrence of 1 hour will result in slightly higher discounted impacts. In summary, the choice of frequency can affect the total impact estimates, so different methods of modelling the activity by shifting between frequency and time spent will not give the exact same results. Use your judgement to determine the best way to model each activity.
All of the above methods will result in 1,200 hours being spent on the activity per year for businesses that are in the market at the start of each year. However, since the frequency determines the number of periods, it also determines at which point new entrants will enter the market and therefore begin to incur the cost. Stakeholders who enter the market partway through the year would not incur the cost as many times as those who were already there at the start of the year. With frequency = 1, all new entrants are assumed to join the market and incur the ongoing cost at the end of the year, meaning that all new entrants would spend 1,200 hours on the activity. This implies that the undiscounted impacts can be different depending on the selected frequency (whenever the stakeholder growth rate is not zero).
Furthermore, with 1,200 periods per year, every subsequent period will be discounted to a slightly greater extent to bring it back to the present-value base year. Compared to using a frequency of 1 and a time spent per occurrence of 1,200 hours, using a frequency of 1,200 and a time spent per occurrence of 1 hour will result in slightly higher discounted impacts. This is because with high frequencies, impacts are assumed to be incurred earlier in the year and are therefore discounted to a lesser extent. In summary, different methods of modelling the activity by shifting between frequency and time spent will not give the exact same results. Use your judgement to determine the best way to model each activity.
Note that the Error Check column will generate a warning message if you enter a frequency greater than 12. Review the message and consider how else you might be able to model the activity. Consult your TBS analyst if you are unsure what to do.
'''Frequency < 1'''
'''Frequency < 1'''
