Posts Tagged ‘Lose Money with Bad Maths’

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5. Made UP Maths

October 12, 2010

Faux Algorithms/ Dodgy Calculations:

Guess Work disguised as a Mathematical method or equation.

Moderately reputable institutions often present statistics and/or calculations, which appear sound but really involve, at best, an educated guess; at worst, a pull-the-number-out-of-your-hat trick.

The RICH LIST is one example. Forbes is a respectable magazine but they are not privy to all the complex financial interests of various list members. How  rich is Scrooge McDuck? Like, rooolly rich, dude!!!!! So which one on the Rich List is Scrooge????

 

Then there are the boffins who produce rubbish formulae for pouring beer, making the perfect piece of toast and popping champagne. These formulae are often sponsored by manufacturers to promote a product such as a new beer brand. Some examples include The Perfect Sitcom (quality = (rd+v)f÷a+s) to promote UKTV Gold; The Perfect Joke (x = (fl + no)/p) to promote some comedian; The Perfect Day (quality = O + NS + Cpm÷T + He) to promote ice cream; The Perfect Rugby Kick (KP = CSP – s + w + r + yn + cr + sc + mt + xn + ctw), which somehow has something to do with a research company called Qinetiq; The Perfect Chip (Tesco)”  and so on. This is rubbish maths because most of the ‘variables’ ( x, t, w, etc)  cannot be measured. It’s all guesswork!!!! See Mathspig Post Britney’s Naughtiness Rating Calculated for Idiots



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6. Goofy Graphs

October 12, 2010

 Graphs               

When graphs are pretty but provide no real information or are misleading.

Graphs frequently appear in the media with no scales, odd scales or totally misleading scales.

This first graph from the Financial Review: Smart Investor magazine ( Oct 2010) has no scale. You could just scribble a line and call it a graph ( See Above) !!!! Then add a number at the end point to make it look real!

Why use a graph? It’s an investment ad selling an investment product.

The second graph shows that the recent Global Financial Crisis was not so bad. Now look at the y-scale. It’s logarithmic.

Buyer beware of goofy graphs!!!!!

 

Some more useful graphs at Bored Panda Blog: