Short Term Rental Riches 60. Are the Numbers You’re Hearing Real? (And What's a Pro Forma?)
Jan 5, 2021
Discover how misleading statistics can distort perceptions in real estate. Learn to critically assess data, especially when it comes to percentages that seem too good to be true. The podcast also dives into the concept of a pro forma and warns against relying solely on it for investment decisions. Explore examples from advertising, including a case with Colgate, to illustrate how numbers can be skewed. Stay informed and avoid misinformation by evaluating the credibility and sources of information in today's data-driven world!
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Misleading Colgate Statistic
- Colgate advertised that 80% of dentists recommend their toothpaste, creating a strong appeal.
- However, those dentists also recommended other brands, making the statistic meaningless and resulting in a lawsuit.
Reebok's False Tone Claims
- Reebok claimed their shoes toned muscles significantly more than traditional shoes.
- The claim was false and led to legal repercussions due to misleading advertising.
Misleading Percentage Increases
- Percentage increases without context can be very misleading, especially with small sample sizes.
- Knowing the base number is crucial to interpret statistics correctly.
