Question

Please summarize how statistics can be misleading and how they may be used to spread doubt on valuations.

As a valuation analyst, what would you do to prepare for the use of misleading statistics on your valuation report

Answer 1

Well statistical fallacy, yes the term used to define misleading of statistical data is statistical fallacy.

Sometimes statistical data is falsified for the benefits of the perpetrators or else it might be an error. But the results are not that simple. They are drastic results because of such falsification.

Summary, we shall take the example of scientists, they are lack of the knowledge of probability and all and therefore fool themselves by wrong statistical decisions sometimes.

So, it is also difficult to identify such falsification because it is very difficult to identify the falsified statistical data.