Statistical thinking is a tool for
process analysis
Process analysis is a form of technical writing and expository writing
The rhetorical modes (also known as modes of discourse) are a broad traditional classification of the major kinds of formal and academic writing (including speech-writing ...
of phenomena in relatively simple terms, while also providing a level of uncertainty surrounding it. It is worth nothing that "statistical thinking" is not the same as "
quantitative literacy", although there is overlap in interpreting numbers and
data visualizations.
Statistical thinking relates processes and
statistics
Statistics (from German language, German: ', "description of a State (polity), state, a country") is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a s ...
, and is based on the following principles:
* All work occurs in a system of interconnected processes.
* Variation exists in all processes
* Understanding and reducing variation are keys to success.
History
W. Edwards Deming
William Edwards Deming (October 14, 1900 – December 20, 1993) was an American business theorist, composer, economist, industrial engineer, management consultant, statistician, and writer. Educated initially as an electrical engineer and later ...
promoted the concepts of statistical thinking, using two powerful experiments:
1. The Red Bead experiment, in which workers are tasked with running a more or less
random
In common usage, randomness is the apparent or actual lack of definite pattern or predictability in information. A random sequence of events, symbols or steps often has no order and does not follow an intelligible pattern or combination. ...
procedure, yet the lowest "performing" workers are fired. The experiment demonstrates how the natural
variability in a process can dwarf the contribution of individual workers' talent.
2. The Funnel experiment, again demonstrating that natural variability in a process can loom larger than it ought to.
The take home message from the experiments is that before management adjusts a process—such as by firing seemingly underperforming employees, or by making physical changes to an
apparatus—they should consider all sources of
variation in the process that led to the performance outcome.
Nigel Marriott breaks down the evolution of statistical thinking.
Benchmarks
Statistical thinking is thought to help in different contexts, such as the
courtroom
A courtroom is the enclosed space in which courts of law are held in front of a judge. A number of courtrooms, which may also be known as "courts", may be housed in a courthouse. In recent years, courtrooms have been equipped with audiovisual ...
,
biology labs,
and children growing up surrounded by data.
The
American Statistical Association
The American Statistical Association (ASA) is the main professional organization for statisticians and related professionals in the United States. It was founded in Boston, Massachusetts, on November 27, 1839, and is the second-oldest continuous ...
(ASA) has laid out what it means to be "statistically educated".
Here is a subset of concepts for students to know, that:
* data beat anecdotes
* data is natural, predictable, and quantifiable
* random sampling allows results of surveys and experiments to be extrapolated to the population
* random assignment in comparative experiments allows cause-and-effect conclusions to be drawn
* to know association is not causation
* significance does not necessarily imply practical importance, especially for studies with large sample sizes
* no statistically significant difference or relationship does not necessarily mean there is no difference or no relationship in the population, especially for studies with small sample sizes
Statistical thinking is a recognized method used as part of
Six Sigma
Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by American engineer Bill Smith while working at Motorola in 1986.
Six Sigma strategies seek to improve manufacturing quality by identifying and removin ...
methodologies.
See also
*
Systems thinking
Systems thinking is a way of making sense of the complexity of the world by looking at it in terms of wholes and relationships rather than by splitting it down into its parts.Anderson, Virginia, & Johnson, Lauren (1997). ''Systems Thinking Ba ...
*
Evidence-based practice
Evidence-based practice is the idea that occupational practices ought to be based on scientific evidence. The movement towards evidence-based practices attempts to encourage and, in some instances, require professionals and other decision-makers ...
*
Analytical thinking
*
Critical thinking
Critical thinking is the process of analyzing available facts, evidence, observations, and arguments to make sound conclusions or informed choices. It involves recognizing underlying assumptions, providing justifications for ideas and actions, ...
*
Computational thinking
Computational thinking (CT) refers to the thought processes involved in formulating problems so their solutions can be represented as computational steps and algorithms. In education, CT is a set of problem-solving methods that involve expressin ...
*
Data thinking
References
{{Reflist
Statistical process control
Six Sigma
Thought
Data science