Don’t trust summary statistics alone

6 May, 2017 at 08:49 | Posted in Statistics & Econometrics | 1 Comment

AllDinosGrey_1

When teaching statistics and econometrics yours truly always stress the importance of data visualization. The thirteen datasets shown above is a great illustration of why one should always plot data. They all have the same summary statistics — mean, standard deviation, correlation coefficient — but some are dinosaurs and others are stars …

Conclusion: never trust summary statistics alone!

drunk

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1 Comment »

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  1. Nice plots. Even worse for evolving economic time-series data, shapes can be changed depending on time-periods.


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