Skills

stats-methods

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SKILL.md

Summarizing Numeric Data

Choosing a Center Metric

Data Characteristic Recommended Measure Rationale
Symmetric, outlier-free Mean Maximally efficient estimator
Asymmetric or outlier-heavy Median Unaffected by extreme values
Non-numeric or ranked Mode Sole option for categorical data
Business KPIs like revenue per user Both mean and median The gap between them reveals skewness

Guideline: For any business metric, present the mean alongside the median. When they differ substantially, the distribution is skewed and the mean by itself will mislead.

Quantifying Variability

  • Standard deviation: Typical distance from the mean; best suited to bell-shaped data.
  • IQR (interquartile range): Gap between the 25th and 75th percentiles; resistant to extreme values.
  • Coefficient of variation: Standard deviation divided by the mean; enables apples-to-apples variability comparison across different scales.
  • Range: Maximum minus minimum; gives a quick but outlier-sensitive view of data spread.
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