Comments on: Heaven or Hell? By What Measure? http://www.3sigma.com/heaven-or-hell-by-what-measure/ Surfing the brink of chaos Wed, 01 Feb 2012 20:47:53 +0000 hourly 1 http://wordpress.org/?v=3.1.1 By: Cycle of Stupidity | Three Sigma Systems http://www.3sigma.com/heaven-or-hell-by-what-measure/comment-page-1/#comment-450 Cycle of Stupidity | Three Sigma Systems Tue, 03 Nov 2009 22:09:35 +0000 http://www.3sigma.com/?p=3118#comment-450 [...] Leveraged risk-taking based on easy credit, is increasing at an increasing rate. On paper, GDP, if you want to call it that, is skyrocketing. But greed, tunnel vision, and “this time is different” thinking, blind the players to [...] [...] Leveraged risk-taking based on easy credit, is increasing at an increasing rate. On paper, GDP, if you want to call it that, is skyrocketing. But greed, tunnel vision, and “this time is different” thinking, blind the players to [...]

]]> By: marc http://www.3sigma.com/heaven-or-hell-by-what-measure/comment-page-1/#comment-420 marc Sun, 01 Nov 2009 19:34:50 +0000 http://www.3sigma.com/?p=3118#comment-420 Your point is well taken. Summary statistics involve a complex set of assumptions about the meaning of various measures and the interactions between them. Even if we grant some validity to the summary statistic called GDP, the common assumption that increasing GDP is a desirable thing is highly questionable. Sometimes slowing things down and moderating growth is a good thing, as in the case of a life threatening cancer. Your point is well taken. Summary statistics involve a complex set of assumptions about the meaning of various measures and the interactions between them. Even if we grant some validity to the summary statistic called GDP, the common assumption that increasing GDP is a desirable thing is highly questionable. Sometimes slowing things down and moderating growth is a good thing, as in the case of a life threatening cancer.

]]> By: john dowd http://www.3sigma.com/heaven-or-hell-by-what-measure/comment-page-1/#comment-415 john dowd Sun, 01 Nov 2009 16:57:22 +0000 http://www.3sigma.com/?p=3118#comment-415 A big part of the problem with these kinds of measures is that they represent an attempt to capture in one indicator a complex system. I had a client that was a large computer maker (you would recognize the name) and the VP of Manufacturing wanted me (the hired gun statistician) to develop an index of quality that he could look at and tell whether quality was getting better or getting worse. He specifically stated his demand that this be "one number". I told him it was a dumb idea and that was the end of my engagement with that company. A big part of the problem with these kinds of measures is that they represent an attempt to capture in one indicator a complex system. I had a client that was a large computer maker (you would recognize the name) and the VP of Manufacturing wanted me (the hired gun statistician) to develop an index of quality that he could look at and tell whether quality was getting better or getting worse. He specifically stated his demand that this be “one number”.

I told him it was a dumb idea and that was the end of my engagement with that company.

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