Explain MFI scale

The MFI scale is a way of characterising news events in a useful way.

'M' is for magnitude. This measures the size of a news event; it varies from the trivial M = 0, up to the disastrous, e.g., a World War, M = 10. The scale is logarithmic in character, like that used for earthquakes, the Richter scale, so that for example an M = 1 event is 10 times more important than an M = 0 event, and so on.

For the purpose of measuring the news relating to company events, we take the reporting of actual results to be an M = 5 event, predicted forecasts and analyst ratings to be M = 4, and the average press release to be an M = 0 or and M = 1. This should give you an idea of how we rate things.

'F' is for favourability. This is a measure of how positive an event is; 1.0 is totally positive, 0.0 is totally negative and 0.5 is taken to be neutral or unknown.

'I' is for integrity. 1.0 means completely credible, almost impossible not to be true; 0.0 completely false and 0.5 is taken to be neither credible nor incredible. So, for example, a story which you got from the BBC might be taken as having I = 0.85, a rumour you heard on a message board might be I = 0.5 and for something you found on a Web site devoted to stories of UFOs and alien lizard beings, I = 0.1