These traps sit inside the numbers. The chart can be accurate and the conclusion still wrong.
Bias
Survivorship bias
Sounds like“We interviewed our ten longest-standing customers, and they all love the product. Churn cannot be a product problem.”
What is going onLooking only at the cases that made it through a filter hides the cases that did not, and the missing cases often hold the answer (Wald, 1943).
AskWho is missing from this data, and what would they say?
Practise it: The Survivorship Bias Lens →
Bias
Base-rate neglect
Sounds like“The fraud model is 99% accurate, so every account it flags must be fraudulent.”
What is going onPeople judge a case by how well it matches the evidence and ignore how common the thing is in the first place (Kahneman and Tversky, 1973).
AskOut of 1,000 cases, how many are truly positive, and how many would the test flag?
Practise it: The Base Rate Machine →
Fallacy
Correlation read as cause
Sounds like“Sales went up the month we launched the new website, so the website worked.”
What is going onTwo things that move together, or one after the other, are taken as cause and effect when a third factor or chance can explain both.
AskWhat else changed at the same time, and what would we see if the website had no effect?
Practise it: Correlation ≠ Causation →
Bias
Regression to the mean
Sounds like“We put the worst branch on an improvement plan, and its numbers recovered the next quarter.”
What is going onAn extreme result is often followed by a more ordinary one by chance alone, so whatever happened in between gets the credit or the blame (Galton, 1886).
AskWould the numbers have moved back toward average with no intervention at all?
Practise it: The Process Behaviour Chart →
Fallacy
Cherry-picking
Sounds like“Look at these three customer quotes. The new feature is a hit.”
What is going onThe speaker shows the data points that support the claim and leaves out the ones that do not.
AskWhat does the full set look like, including the cases that were left out?
Bias
Small-sample surprise
Sounds like“Two of the five people who tried the new process found it slower, so the process does not work.”
What is going onSmall samples swing much more than large ones, yet people treat a small sample as if it were as representative as a large one (Tversky and Kahneman, 1971).
AskHow much would this number move if we ran the test again with five different people?
Trap
Simpson’s paradox
Sounds like“Our approval rate fell overall, so every team must be approving less.”
What is going onA trend that holds inside every group can reverse when the groups are combined, because the mix of groups changed.
AskDoes the pattern hold within each group, or only in the total?
Practise it: Simpson’s Paradox Splitter →