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Statistical Fallacy

When the math adds up, the numbers never lie. They’re infallible, concrete, impossible to argue with — however you want to spin it…

It turns out that even innocent statistics can be twisted to support any nefarious thing you want to prove. The charts below show the exact same data, however the Y axis has been manipulated to downplay or emphasise weakness in the AUD since last year.

Is it more dangerous to drive in NSW or the Northern Territory? It depends on your motivation.

The only way to protect yourself against statistical fallacy is to be mindful of the author’s agenda. Politicians want your votes, stockbrokers want you to make trades  and when journalists grab information from biased parties, we get bad reporting.

Published On: August 19th, 2019Categories: More than just Finance, Quick Tips, The FinSec View