Do you read amazing statistics every day on the web, in newspapers or see them on TV? Coffee will improve your memory! 9 out of 10 people recommend this solution! 90% of participants confirmed ... If we were to pay a minimum of attention to the methodology, then we would ignore all the submitted studies.
But adequate interpretation of data and information is important in the business world. You don't want to "scare" (at least no more than necessary) colleagues at meetings or business partners by giving them misleading information. Here are some problems with interpretation of statistics, prepared by the Business 2 Community website.
It will SIGNIFICANTLY help you/us...
Yes, certainly, if the difference between the original and the new state is PROMINENT enough. If not, then the data interpretation may be very distorted and your colleagues or partners will certainly not be pleased if they have exaggerated expectations.
For example, a difference in numbers of 10% is significant if the normal state is stable. However, 2% compared to the norm will impress no one. Do not waste superlatives and phrases determining any outcome without good reason.
... decreased/increased by X%
It sounds amazing, right? But it depends on the specific information. 50% of ten may, of course, have a completely different meaning compared to 20% of two thousand. Therefore, it is not difficult to make an impression on someone if s/he does not know the exact context.
The same thing applies to interpreting specific numbers. Costs of about a hundred thousand crowns are negligible compared to half a million unless your company has five employees or, say, it is not a sudden expense of a single department/person.
It ALWAYS/NEVER succeeds...
It is the same when you read a single article with a study of how chocolate can help you lose weight. Certainly it helps according to this one study; if, however, the results have no further replication ...? Evidently it was a coincidence or involved some random factor. Our brain has a tendency to generalise data supplied by the surroundings or past experience. So if you tend to underestimate certain facts, e.g. believing that you do not possess negotiating skills because you have recently failed, think on the contrary about individual cases in which you were successful.
-bn-