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 4, 2010

    It was the best of times, it was the worst of times. As you may have guessed, this is a mashup of a novel by Charles Dickens and an [...]

  • September 17, 2010

    There's a hole in the bucket of traditional economics. Homo socialus seems to be on the rise, and homo economicus is getting harder to find. Vulcanism has become evident [...]

  • August 25, 2010

    When I first came to finance, I kept hearing about "risk models". I wondered, "What the hell is a risk model?" Of course, I didn't say this out loud [...]