Statistical construction error

August 20, 2011

Yes, the title is meant to have two readings.

The effect

The Numbers Guy, among other examples, talks about the UK Office for National Statistics needing to revise its estimate for the construction sector output because of an error.

Original: 2.3% growth

Corrected: 0.5% growth

Here is the Telegraph article cited by The Numbers Guy.

The cause

The spreadsheet that is used to calculate the statistic was not updated properly.

Questions

Have they not read “Spreadsheet Addiction”?

Why are they not using R?

Does this scare anybody else?

Epilogue

Who would take the repercussions when the bottle is to blame?

from “Down the Mountain” by Robin E. Contreras

Subscribe to the Portfolio Probe blog by Email

Leave a Reply

Related posts

  • October 15, 2012

    Here are detailed comments on the book.  Elsewhere there is a review of the book. How to read R For Dummies In order to learn R you need to [...]

  • October 10, 2012

    Which sectors are coherent, and which aren't? Previously The post "S&P 500 correlations up to date" looked at rolling mean correlations among stocks.  In particular it looked at rolling [...]

  • October 9, 2012

    Featured I'll be leading two courses in the near future: Value-at-Risk versus Expected Shortfall 2012 October 30-31, London. 30th: "Addressing the critical challenges and issues raised by the Basel [...]