typefitter
Well-Known Member
- Joined
- Dec 5, 2002
- Messages
- 7,375
This is well put.
Correlation does not equal causality. Most people fail to understand that, leading to the overestimation of predictive accuracy.
Further, statistical analysis is one piece of the decision-making process.
And in many instances, people are not honestly considering the data. They are looking for patterns in the data that reinforce, correctly or incorrectly, already held objectives.
I can analyze market trends and figure out what type of restaurant is more likely to be successful at a given location. That is appropriate.
Often, though, I have seen a space I like, or I've already determined that I want to have an Italian restaurant, or I've already determined both - now I'm really just seeking data that can reinforce what I want to do.
Lastly, most restaurants fail. Period. The failure of my restaurant is conditional on a lot of factors. Saying that statistical analysis was not useful in my business endeavor would be false, although saying that might make me feel better.
In the end, analysis, statistical or otherwise, requires a defined and measurable objective in order to have any utility.
If my objective is to move units, statistical analysis can help me sign the right act.
If my objective is to be able to tell people I sighed the next Elvis and I bucked all the trends to do it, then my objective is tainted from a business perspective.
This is helpful. I'm asking honestly, for what it's worth. I wonder if there are things that are resistant to such analysis. Baseball managing, for instance, is another one that got me thinking about it—like, what makes a good manager? Winning percentage is about the only statistic we have to measure a manager's success. So when a GM is deciding whether a manager is "good" or not, what goes into that calculus? I imagine a lot of that comes down to gut or feel. Or at least something less than rigorous statistical analysis.
I'm not saying that's a good thing. I'm just wondering out loud.