On average, averages are stupid

“Across our 100 locations, sales on average are up 3% last month.”

This tells you exactly nothing.

It turns out that ten of the outlets each saw their sales double, while most of the other ones are stagnating or even decreasing in sales. That’s the insight.

Averages almost always hide insights instead of exposing them. If the problem is interesting enough to talk about, it’s interesting enough to show the true groupings and differences that the average is hiding.

Here’s what’s worth discussing instead: What are the outliers? What do they have in common? Are there explainable trends, or is there merely noise?

The hard part about telling the truth with numbers often isn’t finding the truth. It’s having the guts to share the truth.

Reblogged from: here

Advertisements

About janaknmistry

Janak is a 1984 born, MSc and MBA educated from Mumbai, India. He is an avid traveller by choice and a solopreneur by luck. He has clocked many thousands of kilometres on a motorcycle. It was his journey to the Leh-Ladakh, which motivated him to write about his experiences throughout the journey in enjoying the beauty, pain and hardships. He has successful authored and published his book called “Journey in Time with Timeless Memories” which is released and published in Germany and available all over the world besides Asia and the Middle East. Apart from being an author he is an active book reviewer too and have reviewed books by some of the established authors in USA. Janak runs a motorcycle expedition co. called Jack n Jill-The Moto Expedition Co. He is passionate about travelling and photography, which helps him find a beauty and meaning in this wide busy world. It was his journey to the Leh-Ladakh which motivated him to write about his experiences throughout the journey in enjoying the beauty, pain and hardships. He is passionate about travelling and photography which helps him find a beauty and meaning in this wide busy world.
This entry was posted in Self-Realisation and tagged , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s