“What’s measured improves”

-Peter F. Drucker

In Economics, the use of pooled data is used to create Gross Domestic Product charts that can paint a picture about the state of the economy. Another common form of data economists use is cross-section data; for instance, when economists display a supply and demand graph that shows two intersecting slopes. The point at which the two lines intersect is a culmination of data and information can be created from this data and presented to users.

• Economists use big data in the form of both structured and unstructured data. This raw data by itself is difficult to understand and cannot, on its own, be used to conclude many answers. The use of graphs and reports turns raw data into useful information that humans can read to make informed decisions. Using this information obtained from past events and data, the economists can create models and use predictive analytics to identify future trends in the economy. The economist will consider variables that are changing and use these variables to develop scenarios to reach conclusions.
• There is an issue that economists face when creating information, and that is the timing of the data they receive. The economists, therefore, would begin to turn the wrong data into information and forming a false conclusion that they believe to be correct. This information must be analyzed and interpreted in a fact-based manner. Sometimes if the same group of people is given the same information, the results in conclusions can each be different. The book states on page 9, “Thus information has value only insofar as the people using it do as well.”

• Managers need to understand that sometimes just because the information is presented, it does not mean there isn’t more than meets the eye. An example of data being misinterpreted could be a production manager looking over returns and refunds of recently manufactures products. If the manager reads in reports that products are being returned, he or she may blame a part of the production line or machine that produces the product as the cause of the returns. If the manager digs deeper and looks at all the data not included in the report, he or she may find that the source of the raw materials was changed to lower quality, thus resulting in a more inferior quality product. Managers must take into account all variables that can influence a report and then make an informed decision.