Statistically speaking….
Statistically speaking….
I have to put up a post today about something that has been bugging me for some time, and that is how statistics can and are being abused. By almost everyone from our government on down to the huckster trying to get you to join his or her program.
According to Business Insider http://www.businessinsider.com/income-inequality-charts-2011-10
The Economic Policy Institute has put together an amazing interactive chart that shows the growth of incomes in the US over the past 90 years – broken down by who the gains went to.
It used facts and figures that the government uses to how far we have come over the years. At first glance all looks good “Average U.S. incomes grew by $38,216.00, adjusted for inflation.” This is the info the government shares with you to show you how statistically you are better off then your grandparents were.
BUT
A closer look at the figure shows that 51%, yes over 1/2, of that increase went to the 10% of the richest people in the country! This means that the remaining 90% have to split the 49% of the pie left over!
What does this translate to? Lets do some math…
Assume there are 10 of us in a room and we have $100 to share out… I take $51 and the remaining 9 people get to split the remaining $49 so that each of you end up with $5.44. That's what the statistics are REALLY saying!
I the marketing world it is no different, I recently wrote an article about how I make money with PTC’s http://theprimusreport.com/?p=208 In it I specifically referred to my “NeoBux” membership and I cited actual methods that I am successfully using to generate a steady income with the program.
Here comes my point, Yesterday I received an email about “This phenomenal PTC program that has paid out over $55,000,000.00 to its members!”. WOW!, that is pretty cool and seems to be highly impressive. Until you look closer…
There are a hand full of members who earn $1,000+ per month with Neobux and a slightly larger group who earn between $500 and $1,000 each month… still not to bad correct?
Here is the kicker.. NeoBux has OVER 3,000,000 members! 55 million divided by 3 million is a whopping $18.33 per person divided by the 3 years that they have been in business for a grand total of an average income of… (drum roll please)
$6.11 PER YEAR per person!
Does 55 Million in payouts still impress you?
The facts in both cases were accurate but the presentation caused a bias to be the perception rather than the truth. So next time your handed a bunch of facts and figures, stop and take a closer look at what the might really be saying.
NOTE:- If you like my writing I post daily to my blog
www.theprimusreport.com
All links to follow me on other networks are there as well,
Also complimentary copies of most of the books I write.
And links to Proven Paying Programs, Tools and Advertising sources
I have to put up a post today about something that has been bugging me for some time, and that is how statistics can and are being abused. By almost everyone from our government on down to the huckster trying to get you to join his or her program.
According to Business Insider http://www.businessinsider.com/income-inequality-charts-2011-10
The Economic Policy Institute has put together an amazing interactive chart that shows the growth of incomes in the US over the past 90 years – broken down by who the gains went to.
It used facts and figures that the government uses to how far we have come over the years. At first glance all looks good “Average U.S. incomes grew by $38,216.00, adjusted for inflation.” This is the info the government shares with you to show you how statistically you are better off then your grandparents were.
BUT
A closer look at the figure shows that 51%, yes over 1/2, of that increase went to the 10% of the richest people in the country! This means that the remaining 90% have to split the 49% of the pie left over!
What does this translate to? Lets do some math…
Assume there are 10 of us in a room and we have $100 to share out… I take $51 and the remaining 9 people get to split the remaining $49 so that each of you end up with $5.44. That's what the statistics are REALLY saying!
I the marketing world it is no different, I recently wrote an article about how I make money with PTC’s http://theprimusreport.com/?p=208 In it I specifically referred to my “NeoBux” membership and I cited actual methods that I am successfully using to generate a steady income with the program.
Here comes my point, Yesterday I received an email about “This phenomenal PTC program that has paid out over $55,000,000.00 to its members!”. WOW!, that is pretty cool and seems to be highly impressive. Until you look closer…
There are a hand full of members who earn $1,000+ per month with Neobux and a slightly larger group who earn between $500 and $1,000 each month… still not to bad correct?
Here is the kicker.. NeoBux has OVER 3,000,000 members! 55 million divided by 3 million is a whopping $18.33 per person divided by the 3 years that they have been in business for a grand total of an average income of… (drum roll please)
$6.11 PER YEAR per person!
Does 55 Million in payouts still impress you?
The facts in both cases were accurate but the presentation caused a bias to be the perception rather than the truth. So next time your handed a bunch of facts and figures, stop and take a closer look at what the might really be saying.
NOTE:- If you like my writing I post daily to my blog
www.theprimusreport.com All links to follow me on other networks are there as well,
Also complimentary copies of most of the books I write.
And links to Proven Paying Programs, Tools and Advertising sources
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Comments (6)
Cheryl Baumgartner12
Medical Billing/Coding/Insurance
True Udo. What statistics don't tell you is just as important as what they do tell you!
Udo Hoffmann14
Erudite polymath
Speaking of flu shots.... In the USA an average of 3,000 people die of the flue every year (most are elderly, immune compromised or the very young)... what they don't tell you is that the flu shots ALSO kill an estimated 3,000 every year... go figure
Cheryl Baumgartner12
Medical Billing/Coding/Insurance
But if you question this you will be told it was because of the massive number of people who got flu shots. What you are not told is the massive number of people who did not get a flu shot and the rate of Swine flu among those who declined the shot. Those statistics would completely destroy the myth and go against the vested interest that WHO and other health agencies had in selling flu shots.
Cheryl Baumgartner12
Medical Billing/Coding/Insurance
Statistics are patently unreliable when they come from an organization with a vested interest int he outcome. The 'Swine Flu Pandemic' immediately comes to mind. Statistics were used to force voluntary compliance with getting the flu shot. When you take a close look at the statistics you find that they were being blatantly manipulated. The statistics that were being presented on hospitalizations were not Swine Flu specific-they were hospitalizations for Influenza Like Illness. If you have e
Udo Hoffmann14
Erudite polymath
My personal favorite is..... "47% of all statistics are made up as needed" :Þ
Rieke F.7
Consultant
This is a wonderful article which goes along with my own thoughts!!! Great that you are sharing your ideas about the "value of statistics" here.
A proverb comes into my mind: Do not trust any statistics that you have not falsified yourself. :)