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Browse: Home / average

average

The fallacy of averages

The fallacy of averages

By Derek Pilling on January 23, 2014

A discussion with a portfolio company CFO  reminded me that statistics are a dangerous thing and averages are misleading. “There are three types of lies — lies, damn lies, and statistics.” Most businesses analyze their performance using overly simplistic tools. For an extreme example, imagine a scenario where the average customer produces monthly recurring revenue […]

Posted in Business | Tagged average, decision-making, histogram, lessons learned, mean, median, statistics

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