Five Data Points Can Clinch a Business Case [article]

Pop quiz: which of the following statements about decisions do you agree with:

  1. You need at least thirty data points to get a statistically significant result.
  2. One data point tells you nothing.
  3. In a business decision, the monetary value of data is more important than its statistical significance.
  4. If you know almost nothing, almost anything will tell you something.


Bayesian vs. Frequentist?

Under the Errata forum in a thread I called Second Print Run Corrections , one poster replied that he believed I incorrectly applied the term confidence interval in the book. I discuss several errors in that post in a reply in that thread. But it introduces another point of confusion apparently held by some about the difference between Bayesian vs. non-Bayesian methods in statistics and the epistemicologicaly philosophy debate of the frequentist vs. the subjectivist. I addressed it in another thread called Bayesian vs. Frequentist in this In the Clouds forum topic.