I was reminded today of my favourite Monty Python sketch on statistics. I had a look for it on YouTube but sadly couldn’t find it.
The sketch was set on election night with a reporter who did a vox pop and asked a lady in the street how she was going to vote. She said “Conservative”. They then went back to the studio and extrapolated this to their swing-o-meter which predicted a 100% swing to the Conservatives and all seats in the House of Commons switching to that party.
It was very funny. But like the best comedy it was also very true. We’ve all been in situations in business were very small datasets are extrapolated.
Interpolation is of course much more accurate. But to interpolate my experience of statistics in business I can say that interpolation is something that is much less common that extrapolation.