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Lies, Damned Lies and Statistics

May26

Mark Twain made popular the quote, “Lies, damned lies, and statistics” to describe the ability of some people to use the power of numbers to persuade others to believe their viewpoint, particularly to give statistical support for weak arguments. Take this graphic for example:
taxgraphic“It is hard to imagine how to construct a less informative graphic to compare tax rates around the globe. How many problems can I name? The comparisons are base on a single childless worker making what is described as the average salary in their country. How can anyone think that represents the complexity of the tax code anywhere? Tax structures vary by country. Not all are equally progressive, or regressive – depending on your view point. And is a single person typical in any sense? Does the average salary say anything about the tax rates of most people?

Then there is the question of what the taxes actually pay for. In the United States there has been a lot in the news about the advent of Obama care. But in truth much of the costs of insurance is born by the individual in the United State. While in other countries the state pays those costs through the taxes they collect. How do I compare taxes that don’t even pay for the same thing?” Full article here.

More on misleading statistical graphs at this site and, just in case you were getting bored with statistics – in similar fashion, but quite harmlessly, is this analysis of what makes a great TED talk:
ted analysis

You can see more TED talks about statistics here. And, did you know that “Statisticians are people who like data but don’t have the personality skills to become Accountants”? (quote from Peter Donnelly in his TED talk on Statistics)

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y(y-8) = 9 –> y.y – 8y – 9 =0
–> (y-9)(y+1) = 0, therefore y = 9 (can’t have a distance of – 1 for the other solution for y)
Using the top and bottom of the rectangle,
x = (y-8)(y+2) = (9-8)(9+2) = 11
but, the left side = (x-4) = 11-4 = 7, but rhs = y+? = 9+?, which is greater than the value of the opp. side??
[I think that the left had side was a mistake and should have read (x+4)?]

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