Wednesday, February 24, 2010

Statistical cruel magic tricks

Let’s take ten of you. 5 years ago you were earning RM1,000.00 a month. So, per month all 10 of you were earning RM10,000.00 per month or RM120,000.00 per year. Taking this 10 only, the national income (GDI) is RM120,000.00

Then what happened was, 4 of you lost your job and the remaining 6 of you got an income increase to RM2,000.00 each. Since the 6 got a doubled pay increase, therefore the GDI has increased to RM 144,000.00 per year.

Now, the politicians and “experts” will boast that the economy has improved! There has been an increase in income in the country of RM24,000.00. The income levels in the economy has improved by 20% !!!

Everyone "forgets" that there are still 4 persons unemployed!

This is called the statistics trick!

Peace !


Mac said...

indeed, dont you just love the wonders of mathematics! :)

Vazeer said...

Statistics is always at the mercy of the purveyor.