The knowledge of statistics is a powerful tool and some make use of it to take advantage of other people. Casinos and other forms of gambling create games where the odds are on their side. Yet sometimes the lure of winning quick money draws punters despite them knowing chances are stacked against them. Chronic gamblers believe that their luck will prevail and willingly line the coffers of casinos. It is bordering on the thin line of cheating people's money.
Yet there are other more subtle instances when statistics can be employed for profit. Have you ever wondered how some products can claim 100% effectiveness? Take for example, a concoction or treatment that can cure hair loss with money back guaranteed. The seller probably knows that 80% of hair loss cases are curable but claims that their product or treatment is 100% effective. With statistics they can work out that even if 20% of their customers demanded a refund, at the end of the day the profit margin is way much higher.
However, it is not a wise marketing strategy to claim that their product is only 80% effective as it would cast a shadow of doubt in the potential buyers. Many marketing strategies revolve about acting on people's hopes and fears. In the case of hair loss, some advertisements have even gone to the extent of related the lack of a crowning glory to being less of a man or woman.
Statistics are tools of trade for some con-men. Bogus fortune-tellers and/or mystics make use of cleverly phrased statements and predictions to make them seem psychic and even wise beyond words. They may then make use of the trust to extend their influence and power. It is not uncommon that politicians may wield statistics to their advantage as well.
At the end of the day, statistics is no more than a numbers game, for which a rule of thumb is to take it with a pinch of salt.
No comments:
Post a Comment