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understanding statistics Five GoldenYak (tm) award

Economic facts and fallacies uses a variety of examples in social science to teach greater caution and perception of errors in statistical reasoning. Statistical reasoning is, generally, very poor in the population at large, even among those who may be considered ‘well-educated’.

The book is, therefore, highly recommended and would serve as useful background reading and support for any useful course in reasoning ability and scientific understanding. I have even purchased a few copies and sent them to people I think can profit from the book.

“Throughout history, the world has abounded with differences that are today called "disparities" or "inequities," even in situations where they cannot be explained by discrimination. At one time, in czarist Russia, nearly all of the members of the St. Petersburg Academy of Sciences were of German ancestry, even though people of German ancestry were only about one percent of the population of Russia. Today, more than 40 percent of all the billionaires in the world are in one country--the United States. The list could go on and on, until it filled a book. But, however common such statistical disparities have been around the world and throughout history, many continue to reason as if any statistical differences between any groups and suspicious, if not sinister.

“Another fallacy, already noted in Chapters 5 and 7, is what might be called the fallacy of changing composition. When statistical categories are, compared over time, the changing relationships among these categories can be completely misleading as to what is happening to the people or the nations in those categories, when the composition of these categories is changing over time. There may be growing inequalities between those categories during the very same span of years when there is a lessening of inequality between the people or nations who constitute those categories. Moreover, important conclusions and decisions can be based on this fallacy.

“For example, the growth of international free trade has been said to increase inequality among nations because the 23-to-one ratio between the twenty richest and twenty poorest nations in 1960 rose to a 36-to-one ratio in 2000. But the nations constituting the 20 richest and 20 poorest were different in 1960 and 2000. Comparing the same twenty richest and twenty poorest nations of 1960 over those decades shows that the ratio between the richest and poorest declined to less than ten-to-one. This leads to the directly opposite conclusion, suggesting that freer international trade may have helped reduce inequalities among nations, allowing some of the initially poorest to rise out of the category of the bottom twenty.

“Whatever the reason for the declining inequality, the fallacy of believing that international inequality had increased, when in fact it had decreased, is similar to that in an old joke about automobile accidents in Manhattan. In this joke, one friend says to another that statistics show that a man is hit by .a car in Manhattan once every 20 minutes. To which the other replies, "He must get awfully tired of that." The fallacy here is that it is obviously not the same man each time. The very same fallacy underlies much more serious conclusions about both personal and international inequalities over time, when it is not the same individuals or the same nations that are being compared, since each moves from one category to another over time. The changing composition of the categories makes conclusions based on comparisons between the categories fallacious.

“Statistics are no better than the methods and definitions used in collecting them. Without scrutinizing those methods and definitions, we cannot assume that comparable people are being compared, whether comparing the incomes of high school dropouts with college graduates, the incomes of members of different ethnic groups who have the "same" education, or the incomes of single women with married women, when "single" women includes women who were married for years before getting divorced. Nor can statistics about the amount of air pollution in populated areas versus open space tell us anything about whether letting people move into unpopulated areas will increase the total pollution over all, since it is people--not their locations--that generate pollution.

“Perhaps most dangerous of all is the practice of not subjecting fashionable beliefs to the test of facts, but instead accepting or rejecting beliefs according to how well they fit some pre-existing vision of the world. The idea that government intervention is needed to create "affordable housing" is an idea that makes sense only in the context of a preconceived notion, while mountains of hard evidence point in the exact opposite direction. The belief that ghetto riots such as those of the 1960s are a reaction against poverty, discrimination, unemployment, and blighted communities simply will not stand up in the face of hard evidence of when and where those riots took place, which were not in the places or times where these factors were worse.

“The entire educational and employment history of women in the first half of the twentieth century is almost invariably ignored, even in scholarly studies, to concentrate attention on what has happened since 1960, which can be made to fit a preconceived vision of the reasons for women's rise. Similarly with blacks, whose rises out of poverty and into middle class occupations are likewise traced almost invariably from some point after 1960, and attributed to the civil rights movement and government actions of that decade, even though the most dramatic rises of blacks out of poverty occurred in the two decades 1960. Nothing is more fallacious than to ignore a trend that began years before some policy or action that is credited with whatever happened as a continuation of a pre-existing trend. Similar fallacies have appeared in discussions of things ranging from automobile fatality rates to market shares of companies after an antitrust lawsuit.” [Pages 217-219]

Economic facts and fallacies by Thomas Sowell

Economic facts and fallacies
by Thomas Sowell

Basic Books, 2008, hbk
ISBN-10: 04650003494/
ISBN-13: 978-04650003494
£14.24 [amazon.co.uk] /
$17.16
[amazon.com]

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on psychobabble

“On such a flimsy underpinning was the new disorder launched - one of seven new anxiety disorders that were often hard to distinguish, including Schizoid Personality Disorder and Avoidant Personality Disorder. But as soon as they appeared in DSM III, such shortcomings were all forgotten, and the new disorders rapidly became targets for aggressively promoted drug treatments.”

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Shyness by Christopher Lane

Shyness
by Christopher Lane
Guilford Press, 2006

£18.04 [amazon.co.uk] / $18.15 [amazon.com] hbk
Yale University Press.
ISBN-10: 0300124465
ISBN-13: 978-0300124460

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