# 7 Ways To Lie With Statistics And Get Away With It

## Misleading with statistics is nothing new. Statistics are used to sell products, elicit support for a candidate, or get us to ‘Like’ things. Be wary of these seven common tactics used to knead statistical data into “dough.”

What does excess email usage have to do with low IQ scores? Nothing at all, but that doesn’t mean someone
didn’t create a connection to make a point.

I don’t know about you, but I am tired of the incorrect,
misleading, or just plain bogus statistics used to sell me a product, elicit
support for a candidate, or get me to ‘Like’ some new trend. I’m mad as hell and I’m not going to take it
anymore…and neither should you.

Misleading with statistics is called ‘statisticulation’ and
it is nothing new. In 1954, former Better Homes and Gardens editor Darrell
Huff wrote a small book called, How
To Lie with Statistics
, which is the best-selling statistics book of the
last 60 years, according J.
Michael Steele
, a professor of statistics and operations and information management at Wharton.

What was true in 1954 is
just as true today. According to Huff, here
are seven common tactics used to knead statistical data into “dough.”

• Biased sampling:   This involves polling
a non-representative group. For example, a survey that finds “41% of retail
bank customers would use mobile banking if it were available,” becomes
meaningless when you find out the survey only polled people on their mobile
devices.
• Small sample sizes:   Picking
an adequate sample size is part science and part art, but sweeping statements,
like “14% of companies plan to deploy cloud-based email this year” becomes
suspect when the sample size is 24 companies. Another example of this kind of ‘statistics
gone wild’ phenomenon was a “study” conducted by HP that found excessive email usage reduces a person’s IQ by 10 points.
• Poorly-chosen averages:   This often
involves averaging values across non-uniform populations. For example, I recently saw an article that
identified a neighborhood as one of the wealthiest in the city. The article went
on to state that neighborhood residents had an average annual income of around \$100,000.
What the article failed to point out is that the neighborhood is in the process
of gentrification; one part of the neighborhood is very wealthy, and the other
part’s income levels are below the national average. Giving a single average
value for two populations is incorrect and misleading. (The median value for
income would be a better indication of the neighborhood income.) Another classic example of this is the story
about the man who drowned in a pool of water whose average depth was 1 inch.
• Results falling within the standard error:  No sampling or measuring technique is perfect; all inherently incorporate
a degree of error. This means that a survey can only be as accurate as its
standard error. Without getting technical, suffice it to say that the headline,
“E-books Preferred Over Paper By Men More Than By Women” sounds remarkable
until you find out that of the actual polling results found that 52% of men
preferred e-books versus 49% for women, and the error of the survey was +/-5%.
• Using graphs to create an impression:  Both of the charts below contain exactly the same information, but which
one more accurately shows the increase in venture capital investment in mobile
technologies between the years 2006-2007? The only difference between the graphs is the
scale. Graphing data creatively provides a lot of room
for creating false impressions.   The
same goes for pictograms and infographics.

• “The semi-attached figure”: This means
stating one thing as a proof for something else. For example, if an ad says “15% of CEOs drive
a Buick; more than any other brand”– what does that prove? The implication is
that CEOs are some sort of authorities on cars. This is a common tactic. Remember
the old Certs commercials, where the narrator says, “Certs. Now with Retsyn!” Did
anyone even know what Retsyn is or why should we care?
• “Post-hoc fallacy”:   This is incorrectly asserting that there is a direct correlation between two findings. This is particularly
nefarious but it is often more difficult to catch than the other tactics. For
example, if a study finds that vegetarians have a higher average income than
meat-eaters, it would be absurd to conclude that you can raise your income by abstaining
from meat. But that is exactly what some ‘researchers’ do.

Huff presents an entire
chapter of how to identify spotty statistics, which I will revisit those in a future
post. In the meantime, the best advice, as always, is to be skeptical. Caveat
emptor!

inaccurate marketing statistics; please send me stories to dlavenda1@hotmail.com or tweet me @dlavenda.

Author David
Lavenda is a high tech marketing and product strategy executive who also does