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Equation 6 · The Economics of Codex: Tokens, Sandboxes, Review Time, and Software Throughput

What does this equation mean?

LiL_i

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the loss. Read the equation part by part below; each part has a contextual explanation and a link to its mathematical background.

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LiL_i

Symbol L_i

the loss.

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subscript

subscript

The lower label selects a particular version, component, or indexed member of the quantity. For example, x₀ and xₜ can be values at different positions.

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How to interpret it

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What the article says around this equation

where pip_i is probability of an accepted correct result, ViV_i its organizational value, qiq_i the probability a failure escapes review, and LiL_i its loss. The equation omits complementarities and learning, but it places the denominator correctly.

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Sources cited in the article section

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