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Unit 1: The uses and abuses of statistics
The word statistics has two meanings. A statistic is a numerical measurement describing
some characteristic of a set of data. For example, a statistic like 290 pounds could be used to
describe the average or mean weight of a football team. Statistics is also a collection of
methods for planning experiments, collecting data, analyzing the data and drawing
conclusions.
The uses of statistics
It is hard to read a magazine or newspaper without coming across some statistical survey or
analysis. Sportscasts, TV documentaries and newscasts also have their share of statistics. The
uses of statistics include applications in business, sports, medicine, agriculture, psychology,
sociology, education and political science. Governments use statistics to monitor everything
from life style preferences to crime rates. New drugs are statistically analyzed to determine
their effectiveness on patients. The statistical technique of random selection is employed to
guarantee that a small sample of a larger population group is actually an unbiased
representation of the whole population. Statistics, such as plus-minus records, can even be
used to determine whether a certain hockey player should be given more or less ice time.
The abuses of statistics
Just as statistics can be used to provide a solid quantitative analysis of a set of data, statistics
can be misused to distort data. The abuse of statistics is what Benjamin Disraeli (nineteenth
century British prime minister) was referring to when he made the famous comment, “There
are three kinds of lies – lies, damned lies and statistics.”
Statistics can be used to misrepresent a situation. Suppose a small store employs 6 people
who earn an average, or mean, wage of $8.50 per hour as calculated below,
Now suppose the store owner, who earns $40 per hour, includes his wages in the calculation,
If the store owner reports that the average wage earned at the store is $13, he or she is
misrepresenting the situation since the store owner is the only person making $13 per hour or
more.
$8.50
6
$10$9$8$8$8$8
=
++++
+
$13
7
$40$10$9$8
$8$8$8
=
++++++