Question 1 (a)

Misinterpretation is a common problem when using statistical information. It may be caused by a number of factors, such as misunderstanding the data, using incomparable definitions, or even deliberately misinterpreting the information. Please describe two (2) recent examples in real life where statistics are misinterpreted. Explain in detail how they are misinterpreted and what should be the correct interpretation. (70 marks)

(b) Employees in a big company are rated on their performance and their potential for advancement. The data for the 250 sampled employees are summarised in the following table.

Potential for advancement Fair Good Excellent Below average 8 6 11 Performance Average 22 30 23 Above average 46 36 68