Archive for the ‘CPI’ Category

Flaw of Averages: 3 views on inflation …

July 23, 2015

Oftentimes, important trends are buried  in statistical averages.

You know, the thing drowning in a river with an average depth of 3 feet.

In my Strategic Business Analytics course, I harp on “decomposing” problems and statistics down to their component parts …. to simplify the problems and reveal insights.

Here’s a case in point: the Consumer Price Index (CPI).

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For the past 10 years (really, longer), the CPI has pretty much straight-lined upward.

Case closed, steady inflation … right?

Not so fast.

Let’s look at the CPI from a couple of other angles …

(more…)

Posted in Averages - Flaw of averages, CPI, Decomposition - problems & data, Stat, Statistics - Probabilities | Leave a Comment »