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TOP TEN REASON STATISTICAL ANALYSIS LEADS TO NOWHERE

1. Analyst team does not understand the fundamental driver
   1. Need to understand the industry before being able to decipher the data
   2. What sets the price?  What drive demand and supply? Etc.
2. Key stakeholders have not fully grasped the meaning of the analysis
   1. Typically the failure of the analyst to teach/explain in industry terminology
   2. All analysis should be able to be explain back to the fundamentals of the industry
3. Too many correlations lead to useless equations
   1. The more relations the more to forecast therefore the more uncertainty
   2. Correlation does not mean causation
4. Using results with no thought
   1. “the model told me so” – no the model only indicates and you must validate results with fundamental reasoning
5. The past attitudes become significant hurdles
   1. “We got by without statistical analysis”
   2.  “Its just not the way things were done”
6. Poor access to information
   1. Disparate systems holding various data
7. Dissemination of analysis not given to key stakeholders usually because analyst feel intimidated to present results
8. Key stakeholders focused on short term results
   1. Analysis based on historical data typically over a long time period so don’t expect to get a result in a hour or a day
   2. Predicting shorter term period defies the meaning of fundamental
9. Corrupted data
10. Not enough data

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