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There are so many fake business gurus.
You know, the "coaches" who tell you how to start your online business... And how to make a LOT of money (for them, anyway.)
But a good thing they provide is the many good examples for statistical biases. :-)
So I collected a few here:
You know, the "coaches" who tell you how to start your online business... And how to make a LOT of money (for them, anyway.)
But a good thing they provide is the many good examples for statistical biases. :-)
So I collected a few here:
#1
Business gurus say:
"Reverse engineer someone else's success!"
The truth:
You can't. Because of *survivorship bias*. Just because someone did something and succeeded, it doesn't mean that there weren't thousands who did the exact same thing but they didn't get anywhere.
Business gurus say:
"Reverse engineer someone else's success!"
The truth:
You can't. Because of *survivorship bias*. Just because someone did something and succeeded, it doesn't mean that there weren't thousands who did the exact same thing but they didn't get anywhere.
#2
Business gurus say:
"These people attended my $2.000 course and now they make 7-figure with their business."
That's *selection bias* -- more precisely *cherry picking*.
It'd be a bit more fair to show, as well, how many % these students represent compared to all students.
Business gurus say:
"These people attended my $2.000 course and now they make 7-figure with their business."
That's *selection bias* -- more precisely *cherry picking*.
It'd be a bit more fair to show, as well, how many % these students represent compared to all students.
#3
Gurus say:
"These ppl took my course and THUS they make 7-figure with their business."
That's the correlation-causation issue.
Are these students successful because of the course?
Or were they more committed than others already and that's why they took the course?
Gurus say:
"These ppl took my course and THUS they make 7-figure with their business."
That's the correlation-causation issue.
Are these students successful because of the course?
Or were they more committed than others already and that's why they took the course?
#4
Gurus say:
"Those students who didn't become successful were just lazy."
That's *self-serving bias*.
They take credit for positive outcomes (7-figure students) but blaming others ("lazy" students) for negative outcomes.
Gurus say:
"Those students who didn't become successful were just lazy."
That's *self-serving bias*.
They take credit for positive outcomes (7-figure students) but blaming others ("lazy" students) for negative outcomes.
#5
Business gurus say:
"I did this for my business. It'll work for you, too."
That's *omitted variable bias*.
It misses the fact that the students might be:
> different personalities
> with different skills
> on a different market
> in a different life situation
Etc.
Business gurus say:
"I did this for my business. It'll work for you, too."
That's *omitted variable bias*.
It misses the fact that the students might be:
> different personalities
> with different skills
> on a different market
> in a different life situation
Etc.
These were just a few off the top of my head.
If you have more, add them below! ;-)
If you have more, add them below! ;-)
