iPhone Loathing in China Or Why 43% Of All Statistics Are Worthless

 

  • Statistics is the art of never having to say you’re wrong.
  • A statistician is a person who draws a mathematically precise line from an unwarranted assumption to a foregone conclusion.

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[1] Hedonic adjustments revise the price of a good downward if some measurable characteristic has increased. For example, an iPhone that increased in price from $700 to $1000 may actually be considered less expensive if processing power and/or memory increased by more than the 42.5% increase in price (from $700 to $1,000). Thus, it is counted as a reduction in price, thus offsetting any other increases in the price level.

[2] Of course, everyone does it to some degree and US unemployment as well as inflation statistics have serious credibility problems as well. But that is a separate topic.

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