STAT 101
M12 · L01
Module 12 — Capstone

Statistics in the Wild

Numbers flood the news daily. Most people cannot evaluate them. After this course, you can — and you have a responsibility to.

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STAT 101
M12 · L01
The Reflex

Three Questions

Ask these before accepting any statistical claim:

  • Compared to what? — Is there a control group?
  • How big is the effect? — Significant ≠ important
  • Who was measured? — Does the sample generalize?
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STAT 101
M12 · L01
Mistake #1

Correlation ≠ Causation

Observational studies can never fully rule out confounders. The coffee-and-Alzheimer’s headline? Coffee drinkers may simply exercise more, sleep better, have higher incomes.

Rule
Only randomized experiments establish causation. Observational studies establish associations.
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STAT 101
M12 · L01
Mistake #2

Base Rate Fallacy

A 99%-accurate test for a 1-in-1,000 disease: what is the chance a positive test is correct?

Intuition says
99%
Bayes says
~9%
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STAT 101
M12 · L01
Mistake #3

Survivorship Bias

We only see what survived a selection process. WWII bullet-hole analysis: planes with hits in the fuselage returned. Reinforce the areas with no holes — those planes never came back.

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STAT 101
M12 · L01
Mistake #4

P-value Myths

A p-value of 0.03 does not mean there is a 3% chance the null is true. It means: if the null were true, 3% chance of data this extreme.

Wrong — “there is only a 3% chance this result is due to chance”
Wrong — “the effect is large and important”
Right — “data this extreme would be unlikely if H₀ were true”
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STAT 101
M12 · L01
Effect Size Matters

Absolute vs. Relative Risk

Risk drops from 2% to 1%: a 50% relative reduction and a 1 percentage-point absolute reduction. Headlines always use relative — it sounds bigger.

Number Needed to Treat
NNT = 1 / ARR  =  1 / 0.01  =  100
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STAT 101
M12 · L01
The Crisis

Reproducibility Crisis

A 2015 study reproduced 100 psychology experiments. Only 39% replicated. Medicine, economics, and neuroscience face similar problems.

  • Publication bias — null results disappear
  • P-hacking — test many, report the winner
  • HARKing — hypothesize after results known
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STAT 101
M12 · L01
The Fix

Pre-Registration

Publicly commit to your hypothesis, sample size, and analysis plan before collecting data. Time-stamp it. Then follow it.

Confirmatory
Pre-registered
Exploratory
Post-hoc
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STAT 101
M12 · L01
Synthesizing Evidence

Meta-Analysis

Weighted average of effect sizes across independent studies. Precision = weight. More precise studies count more.

Pooled Estimate
\bar{\theta} = \frac{\sum_i w_i\,\hat{\theta}_i}{\sum_i w_i},\quad w_i = \tfrac{1}{\mathrm{SE}_i^2}
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STAT 101
Knowledge Check

Check whatstuck

Four scenarios that test the reasoning traps this lesson warns about.

Question 1 of 0
Score 0/0

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STAT 101
M12 · L01
Critical Reading

The Checklist

  • Study design? — Observational or randomized?
  • Comparison group? — Compared to what?
  • Effect size? — Absolute, not just relative
  • Pre-registered? — Reduces p-hacking risk
  • Replicated? — Single results are preliminary
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STAT 101
Summary
Recap

What you learned

Correlation ≠ causation. Base rates matter. Survivorship bias hides the failures. P-values are widely misread. Pre-registration and meta-analysis are medicine for the reproducibility crisis.

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