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otivm/docs/training/corpus/Layer_2--Uncertainty/CORPUS-0011-quality-uncertainty.md
2026-04-30 08:38:37 -04:00

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CORPUS-0011

Quality Uncertainty

Status: Training Corpus Seed

Layer: Layer_2--Uncertainty

Purpose: Teach that a reported good may exist, but its quality, condition, suitability, or usable quantity may remain uncertain until inspected or used

Repository Path: docs/training/corpus/Layer_2--Uncertainty/CORPUS-0011-quality-uncertainty.md


0. Scenario

A trader in Ostia hears that timber is available for sale.

The report is true.

The timber exists.

But the trader does not yet know whether the timber is dry, straight, strong, damaged, green, warped, or suitable for the intended buyer in Capua.

The uncertainty is not whether the good exists.

The uncertainty is whether the good can serve the intended use.


1. Report Received

A seller says:

I have timber ready for shipment.

This statement may be true.

But it does not answer:

  • what kind of timber?
  • how dry is it?
  • how straight is it?
  • what length and thickness?
  • was it stored well?
  • does it fit the buyer's need?
  • how much is actually usable?

Existence is not quality.


2. Known Facts

Fact Value
Location Ostia
Good timber
Reported availability yes
Intended destination Capua
Intended use cart repair stock
Timber quality unknown
Usable quantity unknown
Inspection status not inspected

The trader knows that timber exists.

He does not yet know whether it is the right timber.


3. Why Quality Matters

Quality changes value.

Timber that is dry and straight may be useful for cart repair.

Timber that is green, warped, or split may be worth less.

The same reported quantity can produce different outcomes:

True Quality Effect
dry and straight suitable for higher-value use
green may require waiting or sell lower
warped may not fit repair demand
partially damaged usable quantity lower than claimed
mixed stock sorting cost required

A good's name does not define its usable value.


4. Arithmetic Variants

Variant A — Suitable Timber

sale value = 48 asses
total cost = 40 asses
result = 8 asses profit

Variant B — Mixed Quality

Only part of the timber fits the repair use.

sale value = 42 asses
total cost = 40 asses
result = 2 asses profit

Variant C — Unsuitable Timber

The timber sells only for ordinary use.

sale value = 34 asses
total cost = 40 asses
result = 6 asses loss

The report was true in all three variants.

The quality changed the outcome.


5. Correct Model Behavior

The model should separate:

Category Meaning
good_exists whether the good is present
stated_quality what seller claims
inspected_quality what buyer or agent verifies
intended_use what the buyer wants it for
suitability whether quality fits intended use
usable_quantity amount that can actually serve the use
quality_discount value reduction from defects or mismatch

The model should not assume a reported good is suitable merely because it exists.


6. Incorrect Model Behavior

The model should not:

  • treat all timber as identical
  • assume seller claim equals true quality
  • ignore storage condition
  • ignore intended use
  • ignore sorting cost
  • ignore unusable portion
  • calculate profit before suitability is known
  • treat quality uncertainty as the same as price uncertainty

Price may be known while quality remains uncertain.

Quality may be known while price remains uncertain.


7. Decision Options

The trader may:

  • inspect the timber personally
  • send a trusted carpenter
  • demand lower price for uncertainty
  • buy only after sorting
  • buy a smaller quantity
  • accept risk for a better price
  • reject the cargo if suitability matters too much
  • redirect unsuitable timber to a lower-value use

Quality uncertainty can be managed, but not ignored.


8. Layer-0 And Layer-1 Concepts Used

This example uses:

  • Layer_0/CORPUS-0004-cost-includes-more-than-purchase-price
  • Layer_0/CORPUS-0012-every-venture-risks-loss
  • Layer_0/CORPUS-0015-materials-can-change-value-through-use
  • Layer_1/CORPUS-0008-material-redirection-timber
  • Layer_2/CORPUS-0003-visible-signal-vs-spoken-claim
  • Layer_2/CORPUS-0005-hidden-true-state-vs-known-state
  • Layer_2/CORPUS-0006-confirmation-has-a-cost

9. Success Condition

If the model sees that a good exists and still asks whether its quality, condition, usable quantity, and suitability match the intended use, this file is functioning correctly.