How you would use the descriptive statistical procedure(s) at work or in your personal life.

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In six sentences or more, explain how you would use the descriptive statistical procedure(s) at work or in your personal life.

Misuse of Statistics: As we will see in the next 12 weeks, statistics when used correctly can be a very powerful tool in managerial decision making.

Statistical techniques are used extensively by marketing, accounting, quality control, consumers, professional sports people, hospital administrators, educators, politicians, physicians, etc…

As such a strong tool, statistics is often misused. Everyone has heard the joke (?) about the statistician who drowned in a river with an average depth of 3 feet or the person who boarded a plane with a bomb because “the odds of two bombs on the same plane are lower than one in one millionth”.

Can you find examples in the popular press of misuse of statistics?

Sample Solution

  • At work: I could use descriptive statistics to analyze sales data to identify trends, such as which products are selling the best or which customers are spending the most money. I could also use descriptive statistics to analyze customer satisfaction data to identify areas where I can improve my company’s products or services.
  • In my personal life: I could use descriptive statistics to track my spending habits to see where I can cut back. I could also use descriptive statistics to track my weight loss progress to see if I am on track to meet my goals.

Here are some examples of how descriptive statistics can be misused in the popular press:

  • A news article might report that the average salary for a software engineer is $100,000. However, this statistic might be misleading if it does not take into account factors such as experience, location, and industry.
  • A political campaign might release a poll showing that they are ahead in the race. However, this poll might be biased if it was only conducted among their supporters.
  • A company might advertise that their product is “clinically proven” to be effective. However, the clinical trial might have been poorly designed or conducted, or the results might have been misinterpreted.

It is important to be aware of the potential for misuse of statistics so that you can make informed decisions. When you see a statistic, be sure to ask yourself the following questions:

  • Who collected the data?
  • How was the data collected?
  • What is the sample size?
  • What are the limitations of the data?

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