Statistics sway people. In fact, people are 87% more likely to trust what you say or write if you have data backing you up. The thing is, 63% of you may have thought \u201cWow!\u201d or \u201cI bet!\u201d when you read that last sentence. Only 27% might have wondered \u201cWhere did that number come from?\u201d Therein lies the problem. Adding a statistic makes things more convincing, but that should only be true if the data is reliable. (And yes, all three of the stats in this introduction were made up!)<\/p>\n
Yet, in this era of \u201cfake news,\u201d we have a growing problem with people either blindly accepting data or treating every piece of information, no matter its source, as suspect. At Sogolytics, our lifeblood is data, so we wanted to examine the importance of data literacy whether you\u2019re using or consuming those statistics and the risks associated with failing to use data responsibly. A second article in this series will provide a checklist you can work with to conscientiously use or consume data.<\/p>\n
You\u2019ve likely encountered an advertisement telling you that \u201cnine out of 10 dentists\u201d agree such-and-such toothpaste or mouthwash is the best or most effective. You might not be as receptive to the claim if it was more generic, simply telling you dentists agree.<\/p>\n
Or perhaps you\u2019ve decided what movie to watch or book to download by looking at a ranking system, like Rotten Tomatoes or Goodreads, to see what percentage of people liked that film or how many stars the population of readers gave a certain book. It saves you the time of having to read all the reviews. Plus, these ranking systems analyze a large volume of responses to, we hope, reduce bias.<\/p>\n
In short, statistics add quantifiable evidence. This type of data can be more logical or objective than someone\u2019s qualitative review or opinion. So, yes, statistics \u2014 when used appropriately \u2014 offer several benefits. Reliable data can:<\/p>\n
Of course, this is true only of the best-available data. This data is not only collected carefully but also reported responsibly and consumed conscientiously.<\/p>\n
The examples above used data in personal applications, yet the odds are good that you use quantitative evidence in your professional life, too. If there were a list of buzzwords for the 2020s, \u201cdata-driven decision making\u201d would probably be near the top.<\/p>\n
Data is used to solve problems and identify opportunities across industries. For example:<\/p>\n
Really, when relevant data is effectively collected, analyzed, interpreted, and presented, the applications are nearly limitless<\/a>. Writing instructors might question the use of adjectives, but in this article the words \u201crelevant\u201d and \u201ceffectively,\u201d and the earlier \u201cconscientiously\u201d and \u201cresponsibly\u201d are critical. Otherwise, the data is suspect.<\/p>\n Statistics deal with numbers and figures. On their face these seem logical and definitive. Yet, statistical results have limitations. These include:<\/p>\n The limitations above are only part of the potential problem. As humans, we tend to like the fast and easy. Typically, we\u2019d prefer to rely on intuition instead of having to go through the many steps of creating, testing, gathering, and validating data.<\/p>\n Daniel Kanneman<\/a>, who won a 2002 Nobel Prize for his study of human decision-making, suggested we have two systems of decision-making:<\/p>\n System 1 helps us survive, but it\u2019s also more error-prone<\/a>. The slower thought system, the more analytical one, can produce better decisions. Yet, how often do we default to instinct?<\/p>\n And his research was done more than 20 years ago. Today, gut-based decisions have a less reliable foundation. We are inundated with every more data than ever before. Yet, simultaneously, we have algorithms filtering information so that we see more of the same. You liked this post on games to play with Solo cups? OK, here are 17 more. By the end of the week, you might not be able to imagine a world in which someone is unaware that there are dozens of silly games you can play with Solo cups.<\/p>\n It\u2019s not that intuition is bad. Especially, in this instance, if your gut is telling you to question the data presented to you. The point is that presenting or consuming data requires you to do some critical thinking about context, representation, significance, credibility, and methodology.<\/p>\n Data literacy<\/a> develops your ability to comprehend and communicate data. It reminds you to analyze and question quantitative evidence (just as you would qualitative data) to make better decisions and drive better outcomes.<\/p>\n Our next article, which provides a checklist of questions to ask yourself when using or receiving data, provides a framework for building up your data literacy.<\/p>\n Ready to build your own reliable data set by collecting feedback from your most relevant audiences?<\/strong> Sign up for a free Sogolytics trial<\/a> today or connect with an expert<\/a> to see how Sogolytics can help you get the insights you need.<\/p>\nLimitations of statistical data<\/h2>\n
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Challenges for humans using data<\/h2>\n
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