# How do you avoid being misled by statistical fallacies?

###### Author

When consuming statistical information from various sources, it is essential to be aware of common pitfalls, biases, and statistical fallacies that can lead to misleading conclusions. Here are some of the most common issues and how to avoid being misled by them:

## 1) Confirmation Bias

This occurs when people seek out or interpret information in a way that confirms their pre-existing beliefs. To avoid this, try to approach data with an open mind and consider alternative explanations.

For example, suppose you believe that a particular political party is more effective at managing the economy. In that case, you might be more likely to focus on positive economic news during their time in power and dismiss negative news as exceptions. To combat this bias, make sure you examine data from multiple sources and time periods to get a more balanced view.

## 2) Sampling Bias

This happens when the data collected is not representative of the entire population. To avoid this, always check the methodology used to collect the data and ensure that it represents a diverse and random sample.

For instance, if a survey claims that 70% of people prefer one brand of soft drink over another, but it only surveyed people at a sports event sponsored by that brand, the results may be biased. In such cases, look for surveys that use random sampling techniques to better represent the population.

Averages (mean, median, or mode) can sometimes provide a distorted view of the data if they are influenced by extreme values or if the data is not normally distributed. To avoid being misled, always examine the data distribution and consider alternative measures of central tendency.

Imagine a neighborhood where most houses are priced around \$200,000, but there’s a single mansion worth \$10,000,000. The mean (average) house price would be significantly higher than the typical house price in the neighborhood. In this case, the median (middle) value might be a more accurate representation.

## 4) Correlation vs. Causation

Just because two variables are correlated does not mean that one causes the other. To avoid this fallacy, always look for alternative explanations and consider whether there could be a hidden variable causing the relationship.

For example, ice cream sales and the number of drowning incidents both increase during the summer. It might be tempting to think that ice cream consumption causes drowning, but the hidden variable is the hot weather, which leads to both higher ice cream sales and more people swimming.

## 5) Cherry-picking Data

This occurs when someone selects specific data points to support their argument while ignoring others that contradict it. To avoid being misled, always consider the full range of data available.

Imagine a blogger citing a study supporting their argument that violent video games cause children to behave aggressively. However, they fail to mention other studies with different findings. To get a more accurate understanding, examine multiple studies and consider the overall body of research.

## 6) False Dichotomy

This fallacy occurs when a situation is presented as having only two possible outcomes, ignoring other possibilities. To avoid being misled, always consider alternative explanations and be cautious of binary conclusions.

For example, a news report might claim that a new drug is either a miracle cure or a complete failure. The drug’s effectiveness may vary based on factors such as dosage, patient population, or specific conditions.

In summary, to avoid being misled by common pitfalls, biases, and statistical fallacies, always critically evaluate the data’s source, methodology, and context. Consider alternative explanations, and be cautious of conclusions that seem too good (or bad) to be true. Remember, it’s crucial to comprehensively understand the data before drawing any conclusions.