Don't believe everything your read blindly... Use your numbersense!

Numbersense: How to Use Big Data to Your Advantage by Kaiser Fung

My rating: 4 of 5 stars


“The key is not how much data is analyzed, but how.”

Data is manipulatable. The same set of data can be analyzed to give the exact polar results. With the accessibility of the Internet, we are living in a world of lots of data. “Big Data” is the word the author used. It’s a vast number of data that’s beyond the scope of any normal data analysis program can handle or manage. Lots of data are obtainable, with lots of analyses of these data available, since every single one of the market players are studying these data to gain an edge in competition.

The author used the Gates Foundation’s example to let us know that even big organizations with lots of money and analysts can still make a stupid decision with the wrong data or analysis. Ten years ago, the Foundation made a mistake assuming that smaller school s are better for student achievement, which is later proven untrue. He argued that Big Data moves us backwards, since more data results in more time spend analyzing, arguing, validating and replicating results. More of the any above activities will cause more doubt and confusion. Therefore, It’s urgent to learn a way to analyze them so you can just keep your head clear, and not being lied to.

“Any kind of subjective ranking does not need to be correct, it just has to be believed”

What do we believe, and what technique do we use to help us make the decision? Data analysis is an art, and not every statistician knows what he’s talking about. A person with good “numbersense” will be way above the others in avoiding the pitfall. A person with a good numbersense will spot bad data or bad analyses, or know when to stop when collecting his own. Unfortunately, numbersense can’t be taught in a regular classroom, a program or a textbook. It’s only learned from another person or real life practices. After more than 20 years in management in a hospital, I know these people do exist, but rarely. They are wonderful problem solvers. Lucky for rest of us, this book is a great place to start learning about numbersense. The author has a way of explaining complex subjects in a simple and understandable way, and his flow of thoughts is logical and very easy to follow. While analyzing data, the author also explained statistical terms thoroughly, as the term significant does not necessarily means important.

The author used real life news examples where someone made a claim about something and then backed it up with data, and he analyzes them, explaining the process to us along the way. The examples include: Law schools admission data, Groupon’s business model, diets and BMI, unemployment and jobs, our inability to remember prices and CPI, and even fantasy football. These examples were very interesting to read as the author gives step-by-step instructions of how these data we see everyday could easily be manipulated to fool us. My daughter is in the process of applying for college, and I can assure you, after reading the first chapter, I will never look at college rankings the same way.

I think every person in marketing, business, sociology, management or data analysis should read this book, as well as any consumer who wants to make sense of this so called “Big Data.” Numbersense is a great word for people who have the talent of analyzing data and spotting errors or intended manipulation. This book reads very much like Freakonomics: A Rogue Economist Explores the Hidden Side of Everything by Stephen Levitt, but is a bit more technical and might take a little understanding of statistics and/or business to fully appreciate the book. My background is business administration and healthcare, and I had a fun ride.

*Thanks to Netgalley and McGraw Hill in providing the advanced reading copy.



View all my reviews