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Question description

As a person who understands and uses statistics to solve problems in business you know that you must use the right statistical tool to compare data against theories. If the data doesn’t support the theory under investigation, you either reject or revise your theory. (You don’t revise the data!)

However, you understand that pitfalls may exist in the data collection process and the reasoning process. For instance, you know to watch for:

  1. Making conclusions about a large population from a small sample.
  2. Making conclusions from nonrandom samples
  3. Attaching importance to rare observations
  4. Using poor survey methods

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