The company had underestimated the cost of delivering care to its two million members.

Conceivably a company could underestimate its future operating costs.

The company also underestimated demand for several key computer models, and then had trouble expanding its production quickly enough to produce those machines.

"We've learned from previous bankruptcies that sometimes companies underestimate" the size of cuts they need, he said.

But the company may be underestimating the loyalty of the buyer to Japanese products.

The company underestimated the cost of delivering care and has said it expects to lose money in 1997.

The company said yesterday that it had overestimated revenues and underestimated costs.

If companies underestimate the value of their pensions, they will set aside less money to pay them, weakening the plans.

The company also underestimated the resolve and the wealth of its competitors, he said.

The company underestimated demand for the car in yellow and silver.