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Why Two Data Points Don't Show Trends: Understanding the Importance of Comprehensive Data Analysis in Workplaces and News

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Sinopsis

The full blog post Two data points are not a trend. Two-data-point comparisons can be mathematically correct but practically meaningless. This is true in workplaces and news articles like this one. Multiple two-data-point comparisons (comparing last month to the previous month AND comparing it to the year before) don't paint the full picture the way a simple run chart would. If a hospital's margin is "23% higher" than the year before, is that a difference between 1% and 1.23% or the difference between 10% and 12.3%? Give me more data points. Better yet, create a chart that shows trends (or the lack thereof) over time. Otherwise, we're just celebrating (or bemoaning) every little up and now. 23% sounds like a big change. But that doesn't mean it's statistically meaningful. Was it down 27% the previous month? Possibly. Some metrics simply fluctuate around a stable average. On NPR recently, the hourly news update covered economic indicators, including the truth and data points that