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	<title>Comments on: Personal Finance 101: How Averages Lie</title>
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	<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/</link>
	<description>Simple, applicable personal finance advice for the modern world</description>
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		<title>By: Chad</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-815954</link>
		<dc:creator>Chad</dc:creator>
		<pubDate>Sun, 22 Nov 2009 16:14:53 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-815954</guid>
		<description>I think mainstream media uses averages (as opposed to other more telling stats.) due to two reasons; a) averages can be more sensational and b)most people understand the term &quot;average&quot;. I think the second reason plays a huge part in the overall picture. Lets face it, the &quot;average&quot; American is likely going to struggle with terms like median, mode, sigma, standard deviation, etc, etc but averages are straight forward math that most understand.

A classic example of math V.S. public understanding is currently in the media. The SCIENTIFIC debate over cancer screening guidelines should be about the MATH. The scientists that developed these new guidelines just didn&#039;t make them up, they analyzed the population and developed recommendation based on the overall statistics. Meanwhile, there are talk show hosts and other media speaking out against these guidelines with little understanding of the actual report results, i.e. the math behind the report. I have no issue with people disagreeing with the report results, but please have a scientific reason, i.e. &quot;The study was flawed because the population size wasn&#039;t statistically significant based on the amount of change the study was looking for.&quot;</description>
		<content:encoded><![CDATA[<p>I think mainstream media uses averages (as opposed to other more telling stats.) due to two reasons; a) averages can be more sensational and b)most people understand the term &#8220;average&#8221;. I think the second reason plays a huge part in the overall picture. Lets face it, the &#8220;average&#8221; American is likely going to struggle with terms like median, mode, sigma, standard deviation, etc, etc but averages are straight forward math that most understand.</p>
<p>A classic example of math V.S. public understanding is currently in the media. The SCIENTIFIC debate over cancer screening guidelines should be about the MATH. The scientists that developed these new guidelines just didn&#8217;t make them up, they analyzed the population and developed recommendation based on the overall statistics. Meanwhile, there are talk show hosts and other media speaking out against these guidelines with little understanding of the actual report results, i.e. the math behind the report. I have no issue with people disagreeing with the report results, but please have a scientific reason, i.e. &#8220;The study was flawed because the population size wasn&#8217;t statistically significant based on the amount of change the study was looking for.&#8221;</p>
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		<title>By: Hank</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-815815</link>
		<dc:creator>Hank</dc:creator>
		<pubDate>Sun, 22 Nov 2009 12:57:32 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-815815</guid>
		<description>What an interesting way to look at the statistics! I never thought of it like that before. Thanks for the insight.</description>
		<content:encoded><![CDATA[<p>What an interesting way to look at the statistics! I never thought of it like that before. Thanks for the insight.</p>
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		<title>By: Georgia</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-814534</link>
		<dc:creator>Georgia</dc:creator>
		<pubDate>Fri, 20 Nov 2009 22:22:37 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-814534</guid>
		<description>My example with numbers may not have to do with statistics, but it is often used.  And I figured it out too late.

When applying for Social Security, I came in 3 months early, as advised by SS.  Well, my first check came less than 1 month later.  The rep talked me into taking the SS benefits 3 months early.  It would only be a loss of $15 per month.  She said it would take me 6 years to make up for those 3 lost checks.  I did the math when I got home and she was right.

However, I decided to also do the math from my point of view.  Forget the first 3 checks and just go for the regular amount.  I tease that I intend to live to be 123.  But, just suppose I made it only to 100 (which many people do nowadays).  Using that time line, I have lost $5k.  Always figure math both ways - the way of others and your way.  Same figures, just different outcomes.</description>
		<content:encoded><![CDATA[<p>My example with numbers may not have to do with statistics, but it is often used.  And I figured it out too late.</p>
<p>When applying for Social Security, I came in 3 months early, as advised by SS.  Well, my first check came less than 1 month later.  The rep talked me into taking the SS benefits 3 months early.  It would only be a loss of $15 per month.  She said it would take me 6 years to make up for those 3 lost checks.  I did the math when I got home and she was right.</p>
<p>However, I decided to also do the math from my point of view.  Forget the first 3 checks and just go for the regular amount.  I tease that I intend to live to be 123.  But, just suppose I made it only to 100 (which many people do nowadays).  Using that time line, I have lost $5k.  Always figure math both ways &#8211; the way of others and your way.  Same figures, just different outcomes.</p>
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		<title>By: Dan</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-814447</link>
		<dc:creator>Dan</dc:creator>
		<pubDate>Fri, 20 Nov 2009 19:02:02 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-814447</guid>
		<description>@#24 Lenore and #26 Johanna

Thanks for checking my attitude on that.  You are correct, my presentation skills do lack. (on average they don&#039;t though)  :))))</description>
		<content:encoded><![CDATA[<p>@#24 Lenore and #26 Johanna</p>
<p>Thanks for checking my attitude on that.  You are correct, my presentation skills do lack. (on average they don&#8217;t though)  :))))</p>
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		<title>By: Doctor S</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-814445</link>
		<dc:creator>Doctor S</dc:creator>
		<pubDate>Fri, 20 Nov 2009 18:56:44 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-814445</guid>
		<description>Many numbers can be deceiving and your point shows that its probably good to look at the entire range and throw out the extreme values in most situation.  I knew there was a reason I took that Applied Data Mining grad course!</description>
		<content:encoded><![CDATA[<p>Many numbers can be deceiving and your point shows that its probably good to look at the entire range and throw out the extreme values in most situation.  I knew there was a reason I took that Applied Data Mining grad course!</p>
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		<title>By: Marsha</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-814436</link>
		<dc:creator>Marsha</dc:creator>
		<pubDate>Fri, 20 Nov 2009 18:30:25 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-814436</guid>
		<description>Averages do not lie.  Averages are only one statistice, and one that was never designed or intended to capture all relevant or interesting information.

You could give people an average, a mean, and a standard deviation and they would still make flawed inferences.</description>
		<content:encoded><![CDATA[<p>Averages do not lie.  Averages are only one statistice, and one that was never designed or intended to capture all relevant or interesting information.</p>
<p>You could give people an average, a mean, and a standard deviation and they would still make flawed inferences.</p>
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		<title>By: Johanna</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-814392</link>
		<dc:creator>Johanna</dc:creator>
		<pubDate>Fri, 20 Nov 2009 17:48:44 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-814392</guid>
		<description>Dan&#039;s presentation may have been lacking, but he does have a point.  Averages (and other statistical measures) don&#039;t really lie - they just don&#039;t tell the whole truth.  (This isn&#039;t necessarily a bad thing.  In the case of the new home sizes, telling the whole truth would mean listing the size of each and every house that was built in 2008.  You wouldn&#039;t want to do that in a news article.)

Where you run into trouble is when people take the averages to mean something more than they actually do.  Maybe it&#039;s because of grade inflation in schools (where most of the grades are A&#039;s and B&#039;s even though they still call C the &quot;average&quot;) that being &quot;merely average,&quot; let alone below average, is somehow inadequate.  It&#039;s not.  If your house is smaller than the average of 2343 square feet, or even if it&#039;s smaller than the median 2090 square feet, that doesn&#039;t mean that there&#039;s something wrong with it - it just means that a lot of new houses are bigger.

Likewise, when high-sounding figures are quoted as the average wedding budget or the average amount parents spend to raise a child, that doesn&#039;t mean you have to spend more than that amount or that there&#039;s anything wrong with you if you don&#039;t.</description>
		<content:encoded><![CDATA[<p>Dan&#8217;s presentation may have been lacking, but he does have a point.  Averages (and other statistical measures) don&#8217;t really lie &#8211; they just don&#8217;t tell the whole truth.  (This isn&#8217;t necessarily a bad thing.  In the case of the new home sizes, telling the whole truth would mean listing the size of each and every house that was built in 2008.  You wouldn&#8217;t want to do that in a news article.)</p>
<p>Where you run into trouble is when people take the averages to mean something more than they actually do.  Maybe it&#8217;s because of grade inflation in schools (where most of the grades are A&#8217;s and B&#8217;s even though they still call C the &#8220;average&#8221;) that being &#8220;merely average,&#8221; let alone below average, is somehow inadequate.  It&#8217;s not.  If your house is smaller than the average of 2343 square feet, or even if it&#8217;s smaller than the median 2090 square feet, that doesn&#8217;t mean that there&#8217;s something wrong with it &#8211; it just means that a lot of new houses are bigger.</p>
<p>Likewise, when high-sounding figures are quoted as the average wedding budget or the average amount parents spend to raise a child, that doesn&#8217;t mean you have to spend more than that amount or that there&#8217;s anything wrong with you if you don&#8217;t.</p>
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		<title>By: AJ</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-814176</link>
		<dc:creator>AJ</dc:creator>
		<pubDate>Fri, 20 Nov 2009 14:40:05 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-814176</guid>
		<description>AnnJo (#10) -

Unfortunately, in your example, the median numbers for that group are ALSO three legs, one wing, and half a beak!  :-)</description>
		<content:encoded><![CDATA[<p>AnnJo (#10) -</p>
<p>Unfortunately, in your example, the median numbers for that group are ALSO three legs, one wing, and half a beak!  :-)</p>
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		<title>By: Lenore</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-814048</link>
		<dc:creator>Lenore</dc:creator>
		<pubDate>Fri, 20 Nov 2009 10:43:27 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-814048</guid>
		<description>I really liked this article, Trent, because there&#039;s so much misinformation and &quot;spun&quot; news to wade through on any given day.  Thanks for the reality check!  I could also use a refresher on sneaky advertising tricks and other abuses of logic as we move into the hype-filled holiday season.

Does anyone know if Black Friday is REALLY the first day of the year that retailers turn a profit?  I can&#039;t believe hardware, furniture or many specialty stores are that dependent on holiday shoppers.  Is this cliche statistic based on Hickory Farms or what?

I&#039;m guessing that Dan of #16 spends an average of 3.14 hours a day criticizing others to make himself feel superior.  &quot;So please don&#039;t act all high and mighty smarter than mathematics.&quot;  He may know more than I do about numbers, but his language and social skills are a joke.</description>
		<content:encoded><![CDATA[<p>I really liked this article, Trent, because there&#8217;s so much misinformation and &#8220;spun&#8221; news to wade through on any given day.  Thanks for the reality check!  I could also use a refresher on sneaky advertising tricks and other abuses of logic as we move into the hype-filled holiday season.</p>
<p>Does anyone know if Black Friday is REALLY the first day of the year that retailers turn a profit?  I can&#8217;t believe hardware, furniture or many specialty stores are that dependent on holiday shoppers.  Is this cliche statistic based on Hickory Farms or what?</p>
<p>I&#8217;m guessing that Dan of #16 spends an average of 3.14 hours a day criticizing others to make himself feel superior.  &#8220;So please don&#8217;t act all high and mighty smarter than mathematics.&#8221;  He may know more than I do about numbers, but his language and social skills are a joke.</p>
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		<title>By: Jim</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813662</link>
		<dc:creator>Jim</dc:creator>
		<pubDate>Thu, 19 Nov 2009 21:01:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813662</guid>
		<description>The median size house in the US is about 1700 sq ft.   The mean size of new houses is bigger because its skewed high by large mcmansions and skewed high because new houses are generally larger than old houses but most people don&#039;t live in newer houses and few really live in mcmansions.

Its important to look at the kind of statistic they&#039;re citing (median or mean) and also to consider what the population they&#039;re talking about.   In the case with &#039;average new houses&#039; its easy for people to apply that stat to think that most Americans have houses this size which is not true.</description>
		<content:encoded><![CDATA[<p>The median size house in the US is about 1700 sq ft.   The mean size of new houses is bigger because its skewed high by large mcmansions and skewed high because new houses are generally larger than old houses but most people don&#8217;t live in newer houses and few really live in mcmansions.</p>
<p>Its important to look at the kind of statistic they&#8217;re citing (median or mean) and also to consider what the population they&#8217;re talking about.   In the case with &#8216;average new houses&#8217; its easy for people to apply that stat to think that most Americans have houses this size which is not true.</p>
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		<title>By: Mary W</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813583</link>
		<dc:creator>Mary W</dc:creator>
		<pubDate>Thu, 19 Nov 2009 19:50:25 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813583</guid>
		<description>The book I read in college that has helped me most in life is &quot;How to Lie With Statistics&quot; by Darrell Huff.  Original copyright is 1954.  It was used in my statistics class in the 1970s, and I believe it is still in print.  

It runs through the things Trent discussed and more regarding, well, how to lie with statistics.  Short, well written, easy to understand book.</description>
		<content:encoded><![CDATA[<p>The book I read in college that has helped me most in life is &#8220;How to Lie With Statistics&#8221; by Darrell Huff.  Original copyright is 1954.  It was used in my statistics class in the 1970s, and I believe it is still in print.  </p>
<p>It runs through the things Trent discussed and more regarding, well, how to lie with statistics.  Short, well written, easy to understand book.</p>
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		<title>By: Steven@hundredgoals.com</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813513</link>
		<dc:creator>Steven@hundredgoals.com</dc:creator>
		<pubDate>Thu, 19 Nov 2009 19:03:23 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813513</guid>
		<description>Statistics are analyzed differently depending on who uses them.  Two people can use the same data set to &quot;prove&quot; their point.  A person has to dig deeper, whether in money or politics or anything else in life.

Dig deeper!</description>
		<content:encoded><![CDATA[<p>Statistics are analyzed differently depending on who uses them.  Two people can use the same data set to &#8220;prove&#8221; their point.  A person has to dig deeper, whether in money or politics or anything else in life.</p>
<p>Dig deeper!</p>
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		<title>By: John DeFlumeri Jr</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813498</link>
		<dc:creator>John DeFlumeri Jr</dc:creator>
		<pubDate>Thu, 19 Nov 2009 18:35:49 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813498</guid>
		<description>That is one of the principles of averaging I think, to discard the extreme highs and lows?

John DeFlumeri Jr</description>
		<content:encoded><![CDATA[<p>That is one of the principles of averaging I think, to discard the extreme highs and lows?</p>
<p>John DeFlumeri Jr</p>
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		<title>By: Kevin</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813465</link>
		<dc:creator>Kevin</dc:creator>
		<pubDate>Thu, 19 Nov 2009 18:16:16 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813465</guid>
		<description>@Oskar (#15):

&quot;Back to houses, I don’t think that a family earning an &#039;average&#039; income can afford an &#039;averege&#039; size house how does that add up?&quot;

Oskar, my friend, I think you&#039;ve just uncovered the root cause of the entire economic collapse that occurred last year.  If only you&#039;d been asking this question in 2001 or so, this whole mess could&#039;ve been avoided.  :)</description>
		<content:encoded><![CDATA[<p>@Oskar (#15):</p>
<p>&#8220;Back to houses, I don’t think that a family earning an &#8216;average&#8217; income can afford an &#8216;averege&#8217; size house how does that add up?&#8221;</p>
<p>Oskar, my friend, I think you&#8217;ve just uncovered the root cause of the entire economic collapse that occurred last year.  If only you&#8217;d been asking this question in 2001 or so, this whole mess could&#8217;ve been avoided.  :)</p>
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		<title>By: kristine</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813419</link>
		<dc:creator>kristine</dc:creator>
		<pubDate>Thu, 19 Nov 2009 17:15:03 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813419</guid>
		<description>I like my averages broken down into pie charts, with ranges that represent the larger plateus. It&#039;s good for us visual learners. 

And yes, averages can be misleading, but you need to start somewhere. If a faucet drips erratically, you would still let it fill up the bucket to see how long it takes to drip a gallon. And you might try again the next day to see if it is dripping faster. The average just shows trend, not breakdown. It&#039;s the change up or down that makes it a useful stat.</description>
		<content:encoded><![CDATA[<p>I like my averages broken down into pie charts, with ranges that represent the larger plateus. It&#8217;s good for us visual learners. </p>
<p>And yes, averages can be misleading, but you need to start somewhere. If a faucet drips erratically, you would still let it fill up the bucket to see how long it takes to drip a gallon. And you might try again the next day to see if it is dripping faster. The average just shows trend, not breakdown. It&#8217;s the change up or down that makes it a useful stat.</p>
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		<title>By: K</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813414</link>
		<dc:creator>K</dc:creator>
		<pubDate>Thu, 19 Nov 2009 17:01:42 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813414</guid>
		<description>@Dan... would that be the &quot;average&quot; poster, or the typical poster?  :)</description>
		<content:encoded><![CDATA[<p>@Dan&#8230; would that be the &#8220;average&#8221; poster, or the typical poster?  :)</p>
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		<title>By: Dan</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813412</link>
		<dc:creator>Dan</dc:creator>
		<pubDate>Thu, 19 Nov 2009 16:54:31 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813412</guid>
		<description>oh boy the ignorance with statistics!
the &quot;problem&quot; with averages isn&#039;t the average, it&#039;s those that misuse them.

An average simply explains a set of data within a certain amount of confidence.  That confidence level, nor the error in data gathering are rarely, if ever discussed, thus leaving an &quot;average&quot; reader to their own machinations.

We get closer when articles mention a statistic and offer further information such as; +/- and how many were surveyed.  

Bottom line:  Averages NEVER Lie!!!!!!!!  EVER!!!!!  You CAN&#039;T SKEW math!!!!!!  People CAN misrepresent, but math is constant.  So please don&#039;t act all high and mighty smarter than mathematics.  Go out there and actually LEARN how math works, then you won&#039;t be caught with misinformation.

(And judging by most of the comments out there, I guarantee that the average poster has never taken a collegiate level statistics class, or if they had, did not do so well)</description>
		<content:encoded><![CDATA[<p>oh boy the ignorance with statistics!<br />
the &#8220;problem&#8221; with averages isn&#8217;t the average, it&#8217;s those that misuse them.</p>
<p>An average simply explains a set of data within a certain amount of confidence.  That confidence level, nor the error in data gathering are rarely, if ever discussed, thus leaving an &#8220;average&#8221; reader to their own machinations.</p>
<p>We get closer when articles mention a statistic and offer further information such as; +/- and how many were surveyed.  </p>
<p>Bottom line:  Averages NEVER Lie!!!!!!!!  EVER!!!!!  You CAN&#8217;T SKEW math!!!!!!  People CAN misrepresent, but math is constant.  So please don&#8217;t act all high and mighty smarter than mathematics.  Go out there and actually LEARN how math works, then you won&#8217;t be caught with misinformation.</p>
<p>(And judging by most of the comments out there, I guarantee that the average poster has never taken a collegiate level statistics class, or if they had, did not do so well)</p>
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		<title>By: Oskar</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813394</link>
		<dc:creator>Oskar</dc:creator>
		<pubDate>Thu, 19 Nov 2009 16:10:22 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813394</guid>
		<description>The Avarage person has 1,95 legs, 1,8 children, 0,4  dogs and 0,3 cats etc etc however I don&#039;t know one person like that:-) 

Back to houses, I don&#039;t think that a family earning an &#039;avarage&#039; income can afford an &#039;avarege&#039; size house how does that add up?</description>
		<content:encoded><![CDATA[<p>The Avarage person has 1,95 legs, 1,8 children, 0,4  dogs and 0,3 cats etc etc however I don&#8217;t know one person like that:-) </p>
<p>Back to houses, I don&#8217;t think that a family earning an &#8216;avarage&#8217; income can afford an &#8216;avarege&#8217; size house how does that add up?</p>
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		<title>By: Seth @ Boy Meets Food</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813390</link>
		<dc:creator>Seth @ Boy Meets Food</dc:creator>
		<pubDate>Thu, 19 Nov 2009 15:56:00 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813390</guid>
		<description>I like the point you are trying to make here, and I do agree that statistics can be very misleading.  However, I think it is important to note that the outliers you mentioned as having messed up the averages would not bear such significant weight in studies of much greater magnitude.  Sure, when the sample size is only 10, one outlier can really screw up the data, but in sample sizes of thousands or hundreds of thousands, even a dozen of those outliers will have little impact.  I do understand that your examples were small for the simplicity of explanation, but my point is that I don&#039;t think the outliers are the real problem in why statistics lie...

The problem is that statistics (even from valid, professionally performed studies) can be manipulated to prove just about any point.  I&#039;m not saying they are lying, just that statistics can be manipulated by changing the perspective (i.e. analyzing a smaller portion of the overall data).

I&#039;ll leave you with a quote from comedian Steven Wright &quot;42.7% of all statistics are made up on the spot.&quot;</description>
		<content:encoded><![CDATA[<p>I like the point you are trying to make here, and I do agree that statistics can be very misleading.  However, I think it is important to note that the outliers you mentioned as having messed up the averages would not bear such significant weight in studies of much greater magnitude.  Sure, when the sample size is only 10, one outlier can really screw up the data, but in sample sizes of thousands or hundreds of thousands, even a dozen of those outliers will have little impact.  I do understand that your examples were small for the simplicity of explanation, but my point is that I don&#8217;t think the outliers are the real problem in why statistics lie&#8230;</p>
<p>The problem is that statistics (even from valid, professionally performed studies) can be manipulated to prove just about any point.  I&#8217;m not saying they are lying, just that statistics can be manipulated by changing the perspective (i.e. analyzing a smaller portion of the overall data).</p>
<p>I&#8217;ll leave you with a quote from comedian Steven Wright &#8220;42.7% of all statistics are made up on the spot.&#8221;</p>
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		<title>By: Kate</title>
		<link>http://www.thesimpledollar.com/2009/11/19/personal-finance-101-how-averages-lie/comment-page-1/#comment-813372</link>
		<dc:creator>Kate</dc:creator>
		<pubDate>Thu, 19 Nov 2009 15:35:37 +0000</pubDate>
		<guid isPermaLink="false">http://www.thesimpledollar.com/?p=4608#comment-813372</guid>
		<description>To Peggy:

Not quite -- mean, mode, and median are each measures of central tendency, but NOT all are the &#039;average&#039;.</description>
		<content:encoded><![CDATA[<p>To Peggy:</p>
<p>Not quite &#8212; mean, mode, and median are each measures of central tendency, but NOT all are the &#8216;average&#8217;.</p>
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