Statistical Moments
If your business decisions only rely on the "𝐀𝐯𝐞𝐫𝐚𝐠𝐞", you are flying blind. ✈️❌
Standard metrics often hide the real operational truths. To truly understand your data, you need to look at the 4 Statistical Moments:
1️⃣ 𝐌𝐞𝐚𝐧 (𝐋𝐨𝐜𝐚𝐭𝐢𝐨𝐧): Where is your center? (e.g., Setting a free delivery threshold just above your Average Order Value).
2️⃣ 𝐕𝐚𝐫𝐢𝐚𝐧𝐜𝐞 (𝐃𝐢𝐬𝐩𝐞𝐫𝐬𝐢𝐨𝐧): How predictable are you? (e.g., It's not just average delivery time, it's the volatility that kills customer trust).
3️⃣ 𝐒𝐤𝐞𝐰𝐧𝐞𝐬𝐬 (𝐀𝐬𝐲𝐦𝐦𝐞𝐭𝐫𝐲): Which way is the data leaning? (e.g., Why ultra-luxury penthouses skew "average" real estate prices for regular buyers).
4️⃣ 𝐊𝐮𝐫𝐭𝐨𝐬𝐢𝐬 (𝐓𝐚𝐢𝐥𝐞𝐝𝐧𝐞𝐬𝐬): How vulnerable are you to extreme shocks? (e.g., Preparing your infrastructure for sudden, bursty DDoS traffic spikes).
Don't just look at the surface. Look at the shape of your data. 📈
👇 I’ve broken down the definitions, logic, and business use-cases in the slide deck below.