Dashboard Dangers 6: Statistical Relevance

in #analytics3 years ago


If you haven't read the other articles in this series, please check them out:

  1. Dashboard Dangers Part 1
  2. Dashboard Dangers Part 2
  3. Dashboard Dangers Part 3
  4. Dashboard Dangers Part 4
  5. Dashboard Dangers Part 5

Statistical Relevance

Many organizations and people make decisions based on the charts and graphs they see. However, they don't always ask the right questions before making a decision.

Suppose we are looking at data by gender. We want to see if we should market to men or women for a given product. Let's look at the data:

We see that there is a higher attrition in women vs. men. However, the attrition rate is lower in women vs. men. Do we create a marketing campaign to retain women or men?

You're asking the wrong question!. It's not about whether we should market to women or men. We should be asking ourselves if the attrition for women vs. men is statistically relevant. There may be a better way to recapture the attrition if we look at other demographics like age or location.

A Chi-Squared test can be run for any type of A/B testing to determine the statistical significance of one group vs. another. If we run this test, it turns out that there is no statistical difference between the attrition rate of the two genders at a 95% confidence interval. This tells us that we should be looking at different subsets of our data before making a decision.

Villani Analytics


Thank you everyone for your support on this article!

thank for your valuable & informtive post..
I appreciate your analysis
@resteem has done to present you dear

Thanks for your support!

wow, thank u so much for your informative post, it will help us more... great post bro!

Congratulations @danvillani! You have completed some achievement on Steemit and have been rewarded with new badge(s) :

Award for the number of comments

Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here

If you no longer want to receive notifications, reply to this comment with the word STOP

Upvote this notification to help all Steemit users. Learn why here!