What Is a Proxy Measure?

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    • The word proxy actually refers to a form of representation. In business, it is a legal term for a shareholder giving another shareholder written permission to represent them and vote for them at a stockholder meeting. Therefore, proxy in the terms of "proxy measure" refers to different approximations of performance.


    • Proxy measures are used to estimate something that is hard to measure quantitatively. They are meant to give an accurate estimation of something abstract. These measures are typically meant to see if a goal has been effectively reached.


    • Some examples of proxy measures, according to Sloan Work and Family Research Network, are client satisfaction and performance evaluations. Universities use the percentage of graduates able to get a well-paying job upon graduation as a proxy measure. Hospitals, correctional facilities and rehabilitation centers estimate their effectiveness by observing average recovery time.

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