Curious Cat Management Improvement Blog: Deming, lean thinking, innovation, customer focus, continual improvement, six sigma.
May 9, 2006
Understanding Data

Topic: Management Improvement

Statistics Abuse and Me by Jay Mathews:

the Simpson’s Paradox numbers. The national average for the SAT went up only 4 points between 1981 and 2005, but the average for whites went up 10 points, for blacks 21 points, for Asians 37 points, for Mexicans 15 points, for Puerto Ricans 23 points and for American Indians 18 points.

How can that be? Is it important? First, yes it is important. Effective use of data is an important part of management improvement. Emphasis the effective, not the data. Use of data by itself is not sufficient.

To be effective you need to learn to think about not what is printed on the page but what lies behind the numbers you see. The numbers are just proxies for the real situation. Look beyond the numbers you see to what they mean and understand how the numbers presented may not fully capture the important details you need to consider.

Ok back to how the SAT numbers could seem to go up fairly significantly for all the sub groups of the total but only a little bit for the total. This numerical quirk is known as Simpson’s Paradox. If the proportions of the subgroups (Asians, American Indians…) change then the overall average is effected not just by the changes of the subgroup average SAT scores but the changes of the weighting of each subgroup (so if the overall average is less than even the lowest gain for a subgroup you know that the subgroup weighting must have increased for one or more of the subgroups with lower SAT scores).

Take care when you are make decision based on your understanding of data to avoid assumptions that may not be correct.

4 Responses to “Understanding Data”

  1. Curious Cat Science and Engineering Blog » Report on K-12 Science Education in USA Says:

    [...] We commented on one example of why it is important to be careful in making conclusions based on data recently (in our management improvement blog). Most often people look for the differences to highlight the differences. That creates a bias to find such differences, which leads me to be a bit skeptical of such claims without an explanation of why the data is convincing that such a difference is significant and not just variation in the data. [...]

  2. CuriousCat: Search Share Data - Checking the ACSI Says:

    oogle grew 39.8% year over year and Yahoo grew 8.9% year over year. Google now has 53.6% of the total searches…

  3. CuriousCat: Fooled by Randomness Says:

    When people are asked to explain random variations in data they will make up special causes (that they often even believe are special causes even when they are not)…

  4. Curious Cat Science and Engineering Blog » 500 Year Floods Says:

    It would seem to me, in fact, actually having a 500 year flood actually increases the odds for it happening again (because the data now includes that case which had not been included before)…

Leave a Reply



Curious Cat Management Improvement Blog © curiouscat.com 2005-2008 powered by WordPress

Internal Links

Author

John Hunter

Categories


Other

Search Blog

Web Search

Management Improvement web search

Recent Comments

  • Lorenzo: Nice presentation by Mary Poppendieck. Where can I get a copy of the slide deck used in the presentation?...
  • Nick McCormick: John, Right on the mark. Asking for feedback and doing nothing about it is a huge demoralizer....
  • WillG: I work for a giant company and we have started the mid-year review cycle. Oh, how I would love to use the...
  • david foster: Funny and pathetic. “It is hard to imagine what management system creates such...
  • Anonymous: I arrived and this page after searching for a blog about psychology. I must say it wasn’t what I was...
  • Christina: I strongly agree with you. Well done for this blog you’re doing a really good job.. Well, being morphed...
  • Matthew: I’m glad that this company is realizing the benefits of manufacturing in the USA. The more Americans...
  • A Sedaris: I agree with Sherry T below that it is all about training and maintaining communication. By and large,...

Archives

May 2006
M T W T F S S
« Apr   Jun »
1234567
891011121314
15161718192021
22232425262728
293031