The Statistical Trap That Looks Like a Win
📰 Medium · Data Science
Learn to avoid the statistical trap that misleads you into thinking a metric is improving when it's not, and understand how to properly analyze customer segment data
Action Steps
- Identify the key metrics for each customer segment
- Calculate the total metric by weighting each segment's metric by its size
- Compare the total metric to the individual segment metrics to check for inconsistencies
- Consider alternative explanations for the apparent improvement in the metric
- Visualize the data to better understand the relationships between segments and the total metric
Who Needs to Know This
Data scientists and analysts can benefit from this knowledge to make more accurate conclusions and inform better business decisions
Key Insight
💡 A metric increasing for every customer segment doesn't necessarily mean it's increasing for the total
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🚨 Beware the statistical trap that makes you think a metric is improving when it's not! 💡
Key Takeaways
Learn to avoid the statistical trap that misleads you into thinking a metric is improving when it's not, and understand how to properly analyze customer segment data
Full Article
Here is a question. If a number goes up for every customer segment you care about, what does it do for the total? Continue reading on Medium »
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