Thursday, August 11, 2016

Three Stages of Statistical Understanding

Stages of statistical understanding:

Statistical Naivety (Statistics prove what they sound like they prove) "1 in 2 workers earn below the median wage!"

Statistical Skepticism (You can prove anything with statistics) "You can't trust the unemployment rate"

Statistical Competence (Awareness of common ways of manipulating statistics, and knowledge of how much a statistic actually proves) "Wealth inequality is striking, but that shouldn't be confused with income or consumption inequality. The Scandinavian countries like Norway or Sweden also have very high wealth inequality, so it doesn't necessarily mean the economy is somehow rigged."