As we will see in the next 12 weeks, statistics when used correctly can be a very powerful tool in managerial decision making.
Q1
As we will see in the next 12 weeks, statistics when used correctly can be a very powerful tool in managerial decision making. Statistical techniques are used extensively by marketing, accounting, quality control, consumers, professional sports people, hospital administrators, educators, politicians, physicians, etc... As such a strong tool, statistics is often misused. Everyone has heard the joke (?) about the statistician who drowned in a river with an average depth of 3 feet or the person who boarded a plane with a bomb because "the odds of two bombs on the same plane are lower than one in one millionth". Can you find examples in the popular press of misuse of statistics?
Q2
See statistics listed and argue whether or not you think those statistics are big numbers. What other data do you need to make your argument? 1. In 2005, Britain raised the age at which retirees can get public pensions from 65 to 67. One newspaper, the Daily Telegraph, argued that “one in five who formerly would have lived long enough to receive a pension will now die before receiving a penny.” Is one in five a big number? 2. In 1997 the British government created a program that would spend about £300M (roughly $600M) over the next five years. The goal of the program was to create a million new child care places at the child care centers around the country. Is £300M (or $600M) a lot of money? 3. In 1956, when DDT (a then common pesticide that was later banned in the US) was in widespread use, one study estimated that the average American adult consumed .2 milligrams of DDT per day. Is .2 milligrams a lot?
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