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

Latest posts

Leave a Reply

Related posts

  • January 19, 2014

    Some facts and some speculation. Definition Volatility is the annualized standard deviation of returns -- it is often expressed in percent. A volatility of 20 means that there is [...]

  • January 13, 2014

    An attempt to clarify the basics. Previously There have been several posts about garch.  In particular: A practical introduction to garch modeling The components garch model in the rugarch [...]

  • January 6, 2014

    The S&P 500 returned 29.6% in 2013.  How might that have varied? S&P weights There are many features that could vary -- here we will keep the same constituents [...]