We seem to believe, sometimes accurately, that the lack of data points is indicative of a less than a reliable outcome.
We also think that the more data points the better, but then we tend to ignore the outliers, while privately acknowledging that is where change, and key insights, first emerge.
At other times, we are paralysed by the lack of data, or have so much of it we use misleading analyses to make our lives easier. The use of averages is a prime example, often resulting in absolutely misleading conclusions.
There was plenty of information about the distribution of icebergs in the North Atlantic in April 1912. However, the only data point that really counted, was that of the lookout on the foredeck of the Titanic.
Captain Smith was motivated by the race to set a new record for the Trans-Atlantic crossing time, and reassured by the information that there were ‘probably’ no icebergs so far south, he piled on the speed.
Whoops, missed the one really important data point.
The lesson: Not all data is born equal, and it is the insights that come from the analysis that really counts.
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