Richard L Epstein

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  Example 4 An economics text gives the following graph and notes that from 1966

  to 1982 the prices of stocks were generally going down.

  The text then presents the following graphs for two other time periods, noting

  in particular that from 1993 to 1998 stock prices were generally going up.

  272 CHAPTER 13 Numbers?

  A much longer and less-biased choice of period (1925-1998) gives a less distorted

  picture. It indicates that investments in stocks are sometimes profitable and sometimes

  unprofitable. W. Baumol and A. S. Blinder, Economics: Principles and Policy

  SECTION C Averages 273

  Analysis Why is the longer period apt for comparison to the present day? If we

  looked at 1890 onwards, we'd have a different picture still ("Full History" is a bad

  label). Maybe the best comparison for an analogy about investing in stocks is with

  the later periods because of new regulations on buying and selling stocks. These

  graphs, however, do compensate for inflation by stating the values in 1983 dollars—

  if they didn't, the comparisons would be apples and oranges.

  C. Averages

  "It ought to be safe to cross here. I heard that the average depth is only two feet."

  Beware: The average is not the maximum or most likely depth.

  The average or mean of a collection of numbers is obtained by adding the numbers and then dividing by the number of items. For example,

  The average of 7, 9, 37, 22, 109 is calculated:

  Add 7 + 9 + 37 + 2 2 + 1 0 9 = 1 8 4

  Divide 184 by 5 = 36.8, the average

  An average is a useful figure to know if there isn't too much variation in the

  figures. For example, suppose the marks Dr. E gave for his course were:

  score

  # students

  95

  3 students

  94

  7 students

  92

  1 student

  90

  4 students

  75

  1 student

  62

  4 students

  57

  5 students

  55

  4 students

  52

  2 students

  The grading scale was 90-100 = A, 80-89 = B, 70-79 = C, 60-69 = D, 59 and

  below = F. When Dr. E's department head asked him how the teaching went, he told

  her, "Great, just like you wanted, the average mark was 75%, a C."

  274 CHAPTER 13 Numbers?

  But she knows Dr. E too well to be satisfied. She asks him, "What was the

  median score?" The median is the midway mark: the same number of items above

  as below. Again Dr. E can reply, "75." As many got above 75 as below 75.

  But knowing how clever Dr. E is with numbers, she asks him what the mode

  score was. The mode is the number most often obtained. Dr. E flushes, "Well,

  94." Now she knows something is fishy. When she said that she wanted the average

  score to be about 75, she was thinking of a graph that looked like:

  students

  The distribution of the marks should be in a bell-shape, clustered around the median.

  Unless you have good reason to believe that the average is pretty close

  to the median and that the distribution is more or less bell-shaped, the

  average doesn't tell you anything important.

  Sometimes people misuse the word "average" by confusing it with the mode or

  most, as in "The average American enjoys action movies."

  Gel your class to stand up. Look around. Do you think the average height is

  the same as the median height? How can you tell? Come up with a physical

  way to determine the median height and the mode of the heights.

  Suppose your class had just eight players from the men's basketball team

  and five women gymnasts. Do you think the median and the average would

  be the same?

  Summary Numbers are our way of measuring. They are important in our reasoning.

  But it's easy to be misled or use them wrong. A vague claim doesn't get any better

  by using numbers. Both sides of a comparison must be made clear. The numbers

  must represent quantities someone could actually know. And often it's not the

  average that's significant, but the median or the mode.

  We also have to be careful in reading graphs, for they can mislead or conceal

  claims by not taking the base of the comparison to be zero, or by using bars, or by

  spacing the numbers on the axes in certain ways.

  Key Words apples and oranges mean

  two times zero is still zero median

  average mode

  EXERCISES for Chapter 13 275

  Exercises for Chapter 13

  1. Find an advertisement that uses a claim with percentages that is misleading or vague.

  2. Find an advertisement that uses a claim with numbers other than percentages that is

  misleading or vague.

  3. Compare a sundial on a sunny day with a digital watch that is set wrong.

  a. Which is more accurate at telling the time?

  b. Which is more precise?

  4. Dick is contemplating getting a new printer. It's faster than his old one. He prints out a

  cartoon and finds that it takes 7 minutes. On his old printer it took 10 and a half minutes.

  Tom tells him he'll save 1/3 of his time. Dick says no, he'll save about 50% of his time.

  Who is right?

  5. "The birth control pill is 99% effective." What does this mean?

  6. Find the average, mean, median, and mode of the scores of Dr. E's students who took

  his critical thinking final exam: 92, 54, 60, 86, 62, 76, 88, 88, 62, 68, 81.

  7. Estimate the average age of students in your class. Do you think it's the same as the

  median? As the mode?

  8. The experts say that over the long term the stock market is the best place to invest. So

  you invested most of your retirement in stocks. You've just turned 70 and need cash to

  retire. But the market went down 15% last week. Evaluate those experts' advice now.

  For Exercises 9-27 point out any use of numbers that is vague, misleading, or wrong.

  9. [Advertisement] Our employees have a combined 52 years of experience!

  10. [On a box of Texmati® rice] Amount per serving

  Serving size 1/4 cup (45g) Calories 150 %DV*

  Servings Per Package about 22 Total Fat 0.5g 1 %

  Sodium 0mg 0%

  Total Carb. 34g 11%

  Protein 3g

  * Percent Daily Values are based on a 2,000 calorie diet.

  11. [From a glossy brochure "Why do I need a water softener?" by Pentair Water Treatment]

  The Bureau of Statistics found that between 17 and 20.8 cents of every dollar are

  spent on cleaning products. . . . The bottom line? Soft water can save you thousands

  of dollars.

  12. [Advertisement for 3 Musketeers® candy bars]

  The sweetest part is finding out how little fat it has.

  (45% less fat than the average of the 25 leading chocolate brands, to be exact.)*

  *Not a low-fat food. 8 fat grams per serving for single bar vs. 15 gram average for

  leading chocolate brands.

  276 CHAPTER 13 Numbers?

  13. [Advertisement] Studies have shown that three cups of Cheerios® a day with a low-fat

  diet can help lower cholesterol.

  14. Dick: Gee, cars are really expensive now. My uncle said he bought a new Ford

  Mustang in 1968 for only $2,000.

  15. [On the box of a fan made by Lasco™ that Dr. E bought]

  NEW WIND RING™ 30% MORE Air Velocity

  16.
[Concerning the way the U.S. Census Bureau operates] In 1990, 65% of the question-

  naires that were mailed were filled out and returned. Census counters went back to

  every household that didn't mail back a form. Even then, the bureau was able to count

  only 98.4% of the U.S. population. USA Today, April 15,1998

  17. Less than 10% of women who get breast cancer have the gene for breast cancer.

  Therefore, if you have the gene, there's only a 10% chance you'll get breast cancer.

  18. In America 7 out of 10 people believe that they are one of the 3 out of 10, whereas in

  Japan 7 out of 10 people believe they are one of the 7.

  Advanced Reasoning Forum, May, 2000

  19. Roadway Congestion

  Cities with highest and lowest roadway congestion index. A value

  greater than 1.0 indicates significant congestion.

  Highest Index Lowest Index

  Los Angeles 1.57 Bakersfield, Calif. 0.68

  Washington 1.43 Laredo, Texas 0.73

  Miami-Hialeah 1.34 Colorado Springs 0.74

  Chicago 1.34 Beaumont, Texas 0.76

  San Francisco 1.33 Corpus Christi, Tex. 0.78 USA Today, 4/13/99

  20. New Mexico Lodging Report: May 2001

  Available

  Occupied

  Occupancy

  Average

  Room-Nights

  Room-Nights

  Rate

  Albuquerque

  190,373

  125,780

  66.1%

  $67.84

  Santa Fe

  100,752

  72,512

  72.0%

  $120.72

  Farmington

  18,197

  12,667

  69.6%

  $57.66

  Carlsbad

  17,647

  10,753

  61.6%

  $56.20

  Las Cruces

  29,884

  19,218

  64.3%

  $57.32

  Taos

  25,345

  12,250

  48.3%

  $68.04

  Other

  53,040

  31,247

  59.3%

  $57.83

  STATE

  435,058

  284,607

  65.4%

  $78.61

  Albuquerque Tribune, June 28, 2001

  21. Dick: I read that drinking a shot of whiskey a day is good for your health. I didn't

  drink much last year, so I better make up for it tonight.

  EXERCISES for Chapter 13 277

  22. Dick: I read that on average, women think of sex about every 12 minutes.

  Zoe: Really? I guess some woman out there is thinking about sex only once a year.

  23. [Advertisement] Mitsubishi is the fastest growing Japanese car company in America.

  24. [Advertisement]

  Official Royal Flush Results! Fiesta 2,115 Texas 1,735

  It's not even close

  Fiesta backs up its claim:

  "We Pay More Royal Flushes per Machine Than Any Other Casino Hotel in the World!"

  For the month of September, Texas [Casino] claimed that it paid out a total of 1,735

  Royals, with approximately 2,000 machines, but for that same period, Fiesta Casino paid

  out 2,115 Royal Flushes, with just 1,200 machines. Here's proof, once again, that

  Fiesta's Slots and Video Poker Machines are the loosest on Earth!

  25. The Vacancy Rate of Albuquerque Apartment Complexes

  98%

  96%

  94%

  92%

  90%

  88%

  86%

  84%

  82%

  80%

  SOURCE: Apartment Association of New Mexico

  Albuquerque Journal, March 3, 2002

  26. S. Korea declares war on leftovers

  Because of the feeling of bounty and plenty that it gives, Koreans routinely cook more at

  home than they can eat, and restaurants serve more than any customer could reasonably

  consume. . . .

  "Koreans are used to thinking 'the more the better,'" said Koh, the restaurant

  manager.

  It's a philosophy the government is battlingto change. In the latest round, the govern-

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  11/23/96

  278 CHAPTER 13 Numbers?

  27. Artery narrowing can be reversed

  A new study has shown what many researchers have thought all along—cardiovascular

  disease (i.e., narrowing of the arteries) can be moderately reversed.

  The well-known secret: lifestyle changes.

  In the study, heart patients who had coronary artery (heart) disease—diagnosed

  through angiograms (X-rays of the arteries)—were: 1) put on a vegetarian diet, 2) told

  to stop smoking, 3) started on a mild to moderate aerobic exercise program (three hours

  per week), and 4) told to practice stress management techniques (e.g., meditation) one

  hour a day.

  Five-year findings: In a control group of heart patients who had not made the

  above lifestyle changes, 45% had coronary narrowing that became worse; 50% showed

  no change; and 5% showed improvement.

  By comparison, 99% of the group who made significant lifestyle changes (see

  above) had healthier arteries (i.e., improved blood flow) or their condition remained

  stable.

  From the heart, Washoe Health System, Fall, 1996

  Which of the following should be trusted to give you a good idea of the population as a

  whole? For which would you prefer to know the median or mode? Explain.

  28. The average wage in the U.S. is $28,912.

  29. The average wage in one rural county of Utah was $14,117.

  30. The average wage of concert pianists in the U.S. is less than the average wage of

  university professors.

  31. The average number of people in a household in Las Vegas is 2.1.

  32. The average GPA of a graduating senior at this college in 2000 was 2.86, while in

  1972 it was 2.41.

  33. Dick: Which section of English Lit should I take, Zoe, Professor Zzzyzzx's or

/>   Professor 011eb0d's?

  Zoe: It doesn't really matter. You can't understand either, and the department info

  on the sections said the average mark in both their classes was a C.

  34. The average income of a woman in the U.S. was only 82% that of a man.

  14 Generalizing

  A. Generalizing 279

  • Exercises for Section A 281

  B. What is a Good Sample?

  1. How you can go wrong 283

  2. Representative samples 284

  • Exercises for Section B 286

  C. When Is a Generalization Good?

  1. Sample size 287

  2. Is the sample studied well? 288

  3. Three premises needed for a good generalization 288

  4. The margin of error and confidence level 289

  5. Variation in the population 290

  6. Risk 290

  7. Analogies and generalizations 291

  Summary 291

  • Exercises for Chapter 14 292

  A. Generalizing

  I think I'll get a border collie. Every one I've met has been friendly and loyal.

  I'd better not visit your home. You've got a cat, and every time I've been

  around a cat I get a terrific sneezing fit and asthma.

  We generalize every day, arguing from a claim about some to a claim about more.

  It's how we make sense of our world: What's happened before is likely to happen

  again. My experience is typical, until I learn otherwise. As we experience more, we

  generalize better because we have more examples from which to generalize.

  But it's not only our own experience. Poll takers and scientists generalize, too,

  as when they say that the President's approval rating is 54%, or they report that 28%

  of all people who smoke get cancer. Those are generalizations from the groups of

  people that were interviewed or studied.

  279

  280 CHAPTER 14 Generalizing

  Generalizing We are generalizing if we conclude a claim about a

  group, the population, from a claim about some part of it, the sample.

  To generalize is to make an argument.

  Sometimes the general claim that is the conclusion is called the

  generalization; sometimes we use that word for the whole argument.

  Plausible premises about the sample are called the inductive evidence

  for the generalization.

  To evaluate whether a generalization is good, we need to see it as an argument.

  Strong arguments with plausible premises will be the best we're likely to get, since

  there will always be the possibility that there's an exception to a generalization.

  E x a m p l e s Are the following generalizations? If so, what is the sample? What is

  the population?

  Example 1 In a study of 816 people who owned sport utility vehicles in Cincinnati,

 

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