5 Mistakes To Avoid When Analyzing Data | Webcoupers
Webcoupers is a Full-Service Digital Marketing Agency in Lagos, Nigeria. We have a passion for blending Creativity with Technology to create meaningful Campaigns that help businesses Grow.We are the Only Google Premier Partner in West Africa.
Webcoupers,Online Marketing,digital marketing agency,digital marketing, best marketing agency in nigeria, Google certified partner, google adwords certified individual,google analytics certified individual,google analytics agency,social media marketing,search engine optimization,email marketing,display advertising,free seo consultation,online marketing strategy, wild fusion, engine marketing search services, search engine optimization business, online marketing course, search engine optimisation price, google premier partner, google premier partner in africa, advertising internet, seo optimization company, internet affiliate marketing, seo optimization tips, web marketing services, 1 engine internet marketing search, engine internet marketing search, affordable search engine placement, search engine optimizations, online web marketing, internet marketing techniques, search engine optimization research, top search engine placement, optimizing search engine, website seo, mobile marketing campaign, search engine optimization package, online advertising market, seo ranking, best search engine optimization software, engine optimization search, guaranteed search engine placement, cheap seo, optimization company, digital marketing company, internet marketing online advertising, social media marketing training, social media marketing firm, legit internet marketing, social media marketing agencies, mobile marketing companies, ppc search engine advertising, search optimisation, social media marketing firms, social media marketing facebook, social media marketing service, facebook social media marketing, seo link building, website search optimization, mobile marketing services, social networking marketing, social media marketing expert, online advertising marketing, social media marketing course, mobile marketing advertising, best seo, guaranteed seo, mobile marketing agency, social media marketing solutions, mobile marketing solutions, small business seo, local search marketing services, online social media marketing, advertising on the internet, social media marketing strategies, digital marketing agencies, search engine placement companies, advertising and marketing on the internet, seo help, social media marketing company, social media marketing management, seo optimization tools, engine optimization seo, optimization seo, search engine placement services, seo website, marketing social media, small business social media marketing, social media marketing institute, social media marketing magazine, social media marketing university, social media marketing wiki, the social media marketing blog, social media marketing for business, company internet marketing, online advertising company, mobile marketing business, mobile marketing agencies, online marketing solution, bluetooth marketing, local mobile marketing, web site optimization, internet marketing ebook, website marketing tools, online digital marketing, mobile marketing service, advertising on line, social media marketing blog, mobile marketing solution, seo copywriting, seo marketing company, social media marketing business, social media marketing software, digital marketing services, free marketing, seo marketing services, social media marketing pricing, engine optimization organic search, social media marketing packages, social media marketing tool, marketing lead generation, social media marketing campaign, mobile marketing platform, digital marketing strategies, online lead generation association, social media marketer, lead generation marketing, marketing with social media, online marketing promotion, digital marketing course, social media marketing consultant, online marketing strategie, seo consultants, mobile marketing and advertising, online marketing expert, social media marketing manager, best seo company, online marketing manager
post-template-default,single,single-post,postid-16633,single-format-standard,ajax_updown,page_not_loaded,,vertical_menu_enabled,qode-child-theme-ver-1.0.0,qode-theme-ver-7.0,wpb-js-composer js-comp-ver-5.0.1,vc_responsive

5 Mistakes To Avoid When Analyzing Data

Webcoupers - Avoiding Mistakes In Analyzing Data

28 Sep 5 Mistakes To Avoid When Analyzing Data

If you have ever been in a dark room trying to feel your way around, and someone turns on the light, then you can relate to what insights discovery does for a decision maker. Good insights is to a decision maker what a compass is to an explorer. If insights are so awesome in “lightning up” your decision making path, you may ask, “How come many people don’t profit from it?” Good question. It turns out that drawing insights, even from good data can be subject to many errors and biases. The good news is that once you know these biases, you can be careful to avoid them, thereby drawing profitable insights from data.

Biases You Need To  Avoid


Survival Bias

Imagine that you are a second year student at your university, and you want to make a decision; Whether to complete your program, or to toe Bill Gates’ path, and that of many other illustrious names in silicon valley and drop out of school (BTW, the second option is destiny-truncating in present day Nigeria). If you go further, and think that many successful entrepreneurs dropped out, and hence you decide to drop out, you have just committed a survival bias. This is because you did not bother to think of the many determined and hardworking youths that dropped out and became a failure.
The survival bias  is the logical error of concentrating on the people or things that made it past some selection process and overlooking those that did not, typically because of their lack of visibility. In order to steer clear of the survival bias, you need to look beyond successes or survivals, and consider the cases that were failures or non-survivals.


Correlation is not Causation

This is known as the third-cause fallacy. Because two quantities move together such as the number of cars on the road, and cost of a bottle of coke does not mean that one is responsible for the other. When two quantities seem to be in agreement with each other, the presence of other quantities is usually responsible for the agreement. For instance, the increasing cars on the road, and the increasing cost of coke, can be explained by other quantities such as changing economic conditions, increased population, increase in the availability of cars, e.t.c.
Many people make this error when trying to explain the reason for an event.  It is important that you ask yourself which other quantity can make two quantities or variables move in agreement before stating that A causes B.


Anchoring Bias

In a widely read book, “Thinking fast and slow”, Nobel Laureate Daniel Kahneman documented the anchoring bias extensively. The “anchoring effect” names our tendency to be influenced by irrelevant numbers.  As an example, most people, when asked whether Gandhi was more than 114 years old when he died, will provide a much larger estimate of his age at death than others who were asked whether Gandhi was more or less than 35 years old.
The anchoring bias can be difficult to avoid, but a good practice is to compare your value of interest to reasonable and flexible bench marks as opposed to hard numbers you are used to.


Availability Bias

Traveling by air is the safest means of travel according to statistics. It is safer than motor vehicles, trains and boats. However, many people think is dangerous when they remember two or three plane crashes. When there are a few reports of  something deemed rare happening such as a miracle or winning a lottery, it is human nature to think that the rare event is not so rare after all, and is more possible than was thought to be. The availability bias is an important tool in the hands of the media to influence the society.If a story about child abductions is aired, people will begin to panic, thinking child abductions are happening with more frequency.
The availability bias makes us overestimate probabilities and end up with poor decisions. This bias can be overcome by basing your decision on enough examples of the event in question, instead of just taking a few positive examples and rushing to make a poor decision.


Illusion of Validity

If a dude is always on his laptop and likes mathematics you may think he is a geek. Right here is the root of the illusion of validity. The said dude could equally be a maths teacher or a graphics designer. Just because something matches a stereotype doesn’t mean we should make a judgment based on the stereotype.
Avoiding this bias is possible if you are aware of it and you actively resist it,  and then you go on to get enough information about your event of interest.


I must confess, even after considerable expereince with analyzing data, I still get blinded by theses biases sometimes. It takes effort and increased awareness to get rid of the biases and analyze with clarity. The only way is to practice practice practice !

Gbolahan Omotosho

Data Analyst. Chelsea FC. Lover of good food.

No Comments

Post A Comment