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How to Be a Top-Notch Data Analyst / Module 05

The statistics you actually use

Five lessons, about 55 minutes. Not a statistics course — just the handful of ideas that stop you from being confidently wrong in front of Chidi.

Module 5 worksheets Real number tables to work through by hand — an average-versus-median comparison, a spread worksheet, a correlation scatter to reason about, a sample-size planner, and an A/B test result to read honestly. One .docx, five pages.
Lesson 5.111 minutes

The four ways an average misleads

Chidi reads one number more than any other: "average basket size." It is also the single easiest number to accidentally misrepresent, in four specific ways worth knowing by name.

Outliers pull itOne ₦180,000 wholesale order among two hundred normal ₦4,000 baskets drags the average up enough to make every branch look busier than it is. The median wouldn't move.
It hides a bimodal splitAn "average" basket size of ₦8,000 can mean everyone spends around ₦8,000 — or it can mean half the customers spend ₦2,000 and half spend ₦14,000, with almost nobody near the average itself.
It changes meaning across group sizesAveraging nine branch averages together is not the same as averaging every individual transaction — a branch with fewer, bigger baskets gets equal weight to one with many small ones.
It erases the trend inside the periodA month's average can look flat while masking a real decline in the second half that a single number never shows.

"What's the average?" is rarely the real question. "What's typical, and how much does it vary?" usually is — and that needs at least two numbers, not one.

Keep this
  • Pair every average with either a median or a spread measure before presenting it — a single average can hide more than it reveals.
  • Averaging averages is not the same as averaging the underlying data — know which one you're doing.
Lesson 5.211 minutes

Spread and distribution: why one number is never enough

Two branches can post the exact same average daily revenue and be running completely different businesses — one steady day after day, the other swinging wildly between a great Saturday and a dead Tuesday. The average alone can't tell them apart; the spread can.

Same average, different reality
Branch ADaily revenue: ₦410k, ₦395k, ₦420k, ₦405k, ₦415k — average ₦409k, tightly clustered. Predictable staffing and stock needs.
Branch BDaily revenue: ₦180k, ₦650k, ₦210k, ₦590k, ₦415k — same average ₦409k, wildly inconsistent. Same average, completely different operational problem.

You don't need a formal standard deviation calculation to make this point to Chidi — the range (highest minus lowest) or simply eyeballing daily values against the average usually says enough. The habit that matters is remembering to look, not the specific formula.

Keep this
  • Two datasets with identical averages can describe entirely different situations — check the spread before concluding they're the same.
  • Range or a quick eyeball against the average is often enough; you rarely need a formal standard deviation to make the point.
Lesson 5.311 minutes

Correlation, causation, and finding the confounder

Branches that run more promotions also tend to have higher footfall. It would be easy — and wrong — to conclude promotions drive footfall. The confounder here is obvious once you look for it: bigger, busier branches both run more promotions (they can afford to) and naturally get more footfall (they're in busier locations). The promotion isn't causing the footfall; branch size is driving both.

A three-question habit before claiming causation

  1. Could a third factor explain both? Branch size, location, season — something driving both variables at once.
  2. Which came first? If footfall was already rising before the promotion started, the promotion can't be the cause of that earlier rise.
  3. Would the relationship survive controlling for the obvious confounder? Compare promotion-vs-no-promotion within branches of similar size, not across all nine branches mixed together.
The honest version of the claim

"Branches running promotions have higher footfall" is a true, defensible correlation. "Promotions increase footfall" is a causal claim the data alone doesn't support. Say the first sentence, not the second, until you've actually ruled out the obvious confounder.

Keep this
  • A correlation is a fact about two numbers moving together. A causal claim is a separate, stronger claim that needs separate evidence.
  • Before claiming cause, ask what third factor could explain both, which came first, and whether the pattern survives controlling for the obvious confounder.
Lesson 5.411 minutes

Sample size and significance in plain language

"Yaba's numbers were down 20% this week" sounds alarming. Whether it should worry Chidi depends enormously on how much a branch's week-to-week numbers normally bounce around — which is a sample-size question in disguise.

If Yaba's weekly revenue normally varies by ±25% just from ordinary randomness — different weather, different days of the week the month lands on, one big or small order — then a 20% dip is comfortably inside normal noise and probably means nothing. If Yaba's weekly revenue is normally rock-steady within ±3%, a 20% dip is a real signal worth investigating immediately.

"Is this a real change, or just noise?" is answerable with one look at the branch's normal week-to-week variation — you rarely need a formal significance test to make a sound call.

Why one week is rarely enough evidence

A single week's result, on its own, is a sample of one. Before treating any single week's swing as meaningful, compare it against several previous weeks of the same branch — not against a different branch, and not against a gut feeling of "that seems like a lot."

Keep this
  • Judge any single period's change against that same branch's normal week-to-week variation, not against intuition.
  • One data point is a sample of one — compare against several prior periods before calling a swing meaningful.
Lesson 5.511 minutes

Reading an A/B test result without overclaiming

Sahara Mart trialled a new receipt layout with a loyalty-points reminder at three branches for two weeks, against six branches running the old layout. The trial branches showed 4% higher loyalty sign-ups. Is the new receipt the reason?

What to check before answering yes

  • Were the trial and control branches actually comparable beforehand? If the three trial branches were already trending upward before the test started, the receipt isn't the explanation.
  • Is 4% bigger than the normal week-to-week gap between these branches anyway? Apply lesson 5.4's habit directly here.
  • Two weeks — long enough? A change this small, over a short window, at only three branches, is thin evidence for a permanent rollout decision.

The honest answer to Chidi is rarely a clean "yes, roll it out" or "no, scrap it." It's closer to: "the early signal is positive and worth continuing to test, but two weeks at three branches isn't enough to be confident it'll hold at scale — recommend extending the trial before a full rollout."

Keep this
  • Check that trial and control groups were comparable before the test started, not just different afterward.
  • A small effect over a short trial at few locations is weak evidence — say so plainly rather than overclaiming a result.
Before the drill

You'll need the worksheet pack's number tables for this one — it's a paper-and-calculator drill, not a written-only exercise.

Module 5 drillabout 45 minutes

Three plausible-sounding claims from real dashboards

Three claims, each pulled from an actual Sahara Mart branch-manager WhatsApp message, each sounding entirely reasonable on first read.

  1. "Our average basket size is up 12% this month, so customers are clearly spending more per visit."
  2. "Branches with a dedicated store greeter have 18% higher sign-ups to the loyalty programme — greeters obviously drive loyalty sign-ups."
  3. "Ibadan's revenue dropped 15% last week compared to the week before — something's clearly wrong at that branch."

For each, write what's actually wrong with the claim as stated, what additional number or comparison you'd want before believing it, and the honest, appropriately-hedged version of the sentence you'd actually send to Chidi.

What this drill is really testing

Not whether you can compute a p-value — none of these claims need one. It's testing whether the five habits from this module (average vs. spread, correlation vs. causation, normal variation vs. real signal) fire automatically the moment you read a confident-sounding claim, the way they'd need to in a real Monday-morning WhatsApp thread.

Before module 6

Module 6 turns to Power BI — building the dashboard that puts these same numbers in front of Chidi in a form that doesn't invite the overclaiming this module just spent 55 minutes guarding against.