PracticeCritical Thinking & First Principles

Applied~2–3 minChoose, then see feedback · no writingFluency is not evidence

A plausible number, unsourced

The benchmark the model supplied

The situation

Your developer-tools product added a free tier four months ago. Hana has drafted the annual plan: a revenue model and a hiring plan for four people. The model's central assumption is a free-to-paid conversion rate the team asked an AI assistant for.

Hana · Finance lead: “The board pack goes out Friday. It’s a standard range; do you want me to change anything?”

The plan is well built and the range is plausible. You have time to check one thing before Friday.

What you can see

E01 · The planning premise

The plan states an 'industry-standard 3–5% free-to-paid conversion' and uses a 3.5% midpoint. The figure is attributed to an AI assistant's answer, quoted in a footnote. No other source is given.

E02 · What rests on it

At 3.5% the model projects enough new paid accounts to fund four hires starting next quarter: two engineers, one support, one sales. At 1.5% the same model funds one hire. The hiring plan is written for four.

E03 · The document

Twelve pages, clearly structured, with a sensitivity table, three scenarios and hedged language throughout. It reads like the work of a careful analyst.

Step 1 of 2

What do you check?

Your first choice is kept. Changing your mind later counts as a retry.