Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Facebook Inc (FB) and Twitter Inc (TWTR)’s Big Data Is Prone To Oversimplification: Tim Worstall

Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) provide us with a promise to provide enough data on individuals that we can make extremely precise guesses as to their likes, dislikes, and even actions. However, according to Tim Worstall, they will only be guesses. In his article on Forbes, Warstall used a research study to highlight the pitfalls of the big data that has almost become synonymous with the likes of Facebook and Twitter.

Facebook FB Twitter TWTR Social Media Stocks

The article sheds light on the limitations of statistics by referring to a very interesting event in history, the outcome of the presidential elections of 1948, when Chicago Tribune published the headlines “Dewey Defeats Truman”, and the actual outcome was quite the opposite. The newspaper’s erroneous information was based on a telephone survey.

While sample size might be one issue that affects the Big Data gleaned from Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR), it is certainly not the only difficulty encountered in the analysis of predicting behaviour. The authenticity of the information that the subscribers expose is another concern. Warstall pointed out that there is often a considerable gap between our actions and what we say.

To this end, he gave the example of a nearly 50% divorce rate. People solemnly promise to stick together through the thick and thin with every intention to do so, but alas only a few really end up sticking to their word. Data from Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) would lie much lower on the ‘my word is my bond’ continuum.

Hence, using data from these social media platforms to draft public policy, thinking it represents the will of the people is bound to be fraught with controversies.

Warstall is not against using this data to highlight trends, but he is of the opinion that special care should be taken when interpreting the results from data gleaned by Facebook Inc (NASDAQ:FB), Twitter Inc (NYSE:TWTR) and the likes.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!