COMMENSURABILITY Assuming that we have obtained valid A-ROI estimates for multiple investments, there remain issues to be considered and addressed when using those results for investment comparisons and decisions. The issues center on the extent to which those different A-ROI estimates can be compared to gauge relative cost-effectiveness and, if the answer is yes, how to compare them properly. First, there is the issue of different outcome measures. For example, A-ROI is calculated for three investments that are intended to increase reading achievement, reduce suspension, and improve sense of belonging, respectively. It is apparently inappropriate to compare the results directly […]

In the first post of this series, I discussed validity of A-ROI as a measure of cost-effectiveness. In this post, I focus on uncertainty embedded in A-ROI results. In the business world, ROI is largely treated as an accounting measure with certainty, but the certainty only applies to the accounting period. That is, for a three-year investment, the ROI result is a both accurate and precise representation of its profitability over those three years only. Consumers of ROI information are admonished about risks when applying it to the future or other contexts. Generally, little is provided about those risks other […]

You can download a pdf version of this article at https://eric.ed.gov/?id=ED603587. Please note that this web version was updated later with the following reference added. Biancarosa, Gina, Anthony S. Bryk, and Emily R. Dexter. “Assessing the Value-Added Effects of Literacy Collaborative Professional Development on Student Learning.” Elementary School Journal 111, no. 1 (September 2010): 7–34. https://doi.org/10.1086/653468. INTRODUCTION Return on investment (ROI) is a concept that originated in the business world in the early twentieth century. According to the Hagley Museum and Library, the concept and the formula were first developed in 1914 by Donaldson Brown, the Assistant Treasurer of the […]