JOURNAL ARTICLE

One Simple Way to Get Better at Reading Data: Always ask "What is the denominator?".

  • Published In: Harvard Business Review Digital Articles, 2025. P. 1 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Camm, Jeffrey D.; D'Agostino McGowan, Lucy 3 of 3

Abstract

The article emphasizes the importance of understanding statistical context in data interpretation, particularly by asking the question, "What is the denominator?" It highlights how percentages can be misleading without the accompanying absolute values, as they can obscure the true significance of data changes. The authors provide examples illustrating how misinterpretation can occur in various scenarios, such as financial reporting and survey results, stressing that leaders should always seek clarity by requesting both percentages and their denominators to make informed decisions. The article advocates for a critical approach to statistics to avoid being misled by selective data presentation. [Extracted from the article]

Additional Information

  • Source:Harvard Business Review Digital Articles. 2025/05, p1
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2025
  • Accession Number:186264643
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