Changes

The RCC calculations keep track of how many stakeholders from each cohort are remaining in every period of the analysis, because the same cohort(s) may experience a reduction multiple times.   

The RCC calculations keep track of how many stakeholders from each cohort are remaining in every period of the analysis, because the same cohort(s) may experience a reduction multiple times.   

In every year in the analysis and for each cohort, a cohort weight is calculated. This weight is the product of all [1+(Percentage Change in Stakeholder Count)] values, after that cohort has entered the market. To reiterate, increases in the stakeholder count form new cohorts, so in these cases the percentage change for previous cohorts is 0. When the stakeholder count increases, the remaining counts from each cohort are simply multiplied by 1 (meaning they stay the same size).  

In every year in the analysis and for each cohort, a cohort weight is calculated. This weight is the product of all [1+(Percentage Change in Stakeholder Count)] values, after that cohort has entered the market. To reiterate, increases in the stakeholder count form new cohorts, so in these cases the percentage change is automatically set to 0. When the stakeholder count increases, the remaining counts from each cohort are simply multiplied by 1 (meaning they stay the same size).  

In Excel, these cohort weights are calculated using the PRODUCT function. For example, the number of Existing Stakeholders at the end of Year 4 could look like this: (Initial Count at Registration)*PRODUCT(1, 1, 0.9, 0.8). In successive years in the analysis, more [1+(Percentage Change in Stakeholder Count)] terms are included in the PRODUCT function. This ensures that successive reductions are applied cumulatively. As more values are added into the PRODUCT function, the cohort weight will either stay the same as it was in the previous year, or it will shrink. If there is an increase in the stakeholder count, then a new value of 1 is added to PRODUCT, which does not change the result compared to the previous year. Importantly, this means that any prior reductions are carried forward; e.g., PRODUCT(1, 0.9, 1). If there is a decrease in the stakeholder count, then a new value less than 1 is added to the product, which shrinks each affected cohort relative to its count in the previous year.  

In Excel, these cohort weights are calculated using the PRODUCT function. For example, the number of Existing Stakeholders at the end of Year 4 could look like this: (Initial Count at Registration)*PRODUCT(1, 1, 0.9, 0.8). In successive years in the analysis, more [1+(Percentage Change in Stakeholder Count)] terms are included in the PRODUCT function. This ensures that successive reductions are applied cumulatively. As more values are added into the PRODUCT function, the cohort weight will either stay the same as it was in the previous year, or it will shrink. If there is an increase in the stakeholder count, then a new value of 1 is added to PRODUCT, which does not change the result compared to the previous year. Importantly, this means that any prior reductions are carried forward; e.g., PRODUCT(1, 0.9, 1). If there is a decrease in the stakeholder count, then a new value less than 1 is added to the product, which shrinks each affected cohort relative to its count in the previous year.