What Are the Common Causes of Statistical Errors in Business?
Several factors contribute to statistical errors in business:
Sampling Bias: When the sample is not representative of the population, it can lead to incorrect conclusions. Measurement Errors: Inaccurate data collection methods can introduce errors. Data Outliers: Unusual data points can skew results. Overfitting: Creating models that are too complex can lead to errors when applied to new data. Underfitting: Oversimplified models may fail to capture important trends.