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Who Is the Smart Grid Technology Leader?

One of the hot technology trends over the past many months has been development of the smart grid (SG).  Reading Smart Grid News and other industry, and even mainstream, publications re...

Blog | Ruth Fisher | 22-May-2010

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Playing the Net Neutrality Game, Part 2

Brief Recap of Part 1 Understanding Deep Packet Inspection Understanding Broadband Services Using DPI to Manage Internet Traffic Outcome of the Net Neutrality Game — Take 2   Brief Recap of Part 1 In Playing the Net ...

Blog | Ruth Fisher | 29-Apr-2010

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A Note on My Previous Net Neutrality Blog Post

I recently published a blog entry on the Net Neutrality Game.  However, I just found out that there is a critical aspect of the net neutrality issue that I failed ...

Blog | Ruth Fisher | 20-Apr-2010

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Playing the Net Neutrality Game, Part 1

Definition of Net Neutrality The Heart of the Matter Overview of the Net Neutrality Game Outcome of the Game: Per-User vs. Per-Usage Internet Fees   A recent court decision struck a blow against net neutrality.  ...

Blog | Ruth Fisher | 12-Apr-2010

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Is Apple's Ecosystem Successful Because of or In Spite of Apple?

Does Apple Dominate the MP3 Player & Smartphone Markets? Apple iPod & iPhone Sales Timeline How Did Apple Manage the Growth of Its Ecosystem to Create Value? Would Even More Value Have Been Cr...

Blog | Ruth Fisher | 02-Apr-2010

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Are Device – Content Systems Moving Towards Compatibility or Incompatibility?

Public vs. Private Information on the Internet Does Hardware Drive Software, or Vice Versa? Why Have Past Consortia for Compatibility Failed, and Why Would DECE Now Succeed? So Are Device-Content Systems Moving Toward ...

Blog | Ruth Fisher | 13-Mar-2010

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Creating Capital Markets for Patents

Myhrvold’s Business Model Historical Trends in Industry Funding for R&D and Patenting Will Myhrvold’s Model Work?   In recent articles in both the NYT and the Harvard Business Review, Nathan Myhrvold, former CTO of ...

Blog | Ruth Fisher | 06-Mar-2010

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Playing the e-Book Game

The e-Book Pricing Battle The following is a brief history of the e-book pricing battle that has been taking place. The passage quotes heavily from three articles: “Publishers, Amazon in Flux in ...

Blog | Ruth Fisher | 13-Feb-2010

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To confuse the model with the world is to embrace a future disaster driven by the belief that humans obey mathematical rules.

-- Emanuel Derman

All Insights Two Common Analysis Fatal Flaws - Page 6
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Sample Selection

The validity of being able to use a sample in lieu the entire population to draw conclusion about the population rests on the assumption that the sample is just like the population regarding the quantity of interest, only smaller in size. If this turns out not to be true, then you cannot be sure that what you find to be true of the sample is also true of the population.

There are two types of samples that are commonly used that often turn out not to be representative of the population: convenience samples, and self-selected samples. Generalizations about the populations made based on sampling from these two types of populations are often faulty.

Convenience samples are groups to which analysts have easy access. They might be entities with which analysts have prior relationships, entities that happen to be in close contact to analysts at the right time, or entities that are particularly visible. Convenience sample are used because they are easy to access, not necessarily because they constitute a cross-section of the population of interest. Any time convenience samples are used to draw conclusions about some population, you should be wary of the validity of the conclusions.

Self-selected samples are composed of entities that volunteer to be part of a study. Volunteers often come forward because they have their own agenda to promote, rather than to simply provide information for the study at issue. People will volunteer, for example, if they have particularly positive or particularly negative feelings or experiences with the issue at hand and they want others to know about them. Again, you should be wary of conclusions drawn about a population based on samples composed of self-selected entitles.

In the Dartmouth study, UCLA was chosen as a sample hospital to be used as the basis for measuring waste precisely because the hospital has a reputation for being aggressive in providing care for patients. At the same time, the Mayo Clinic was chosen as a point of comparison for UCLA precisely because it is known for being conscientious about providing cost-effective care. As such, any comparisons should have been expected to provide large differences. Neither hospital is representative of the average hospital in the US, so any conclusions drawn from a comparison of what goes on at the two cannot be used as a valid estimate of measures at the national level.



 

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