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Interpretation

E5

Use filters and review checkpoints to manage the reduction and elimination of bias (e.g. linear bias, confirmative bias, confidence bias).

Improvement Planning

Practices-Outcomes-Metrics (POM)

Representative POMs are described for Interpretation at each level of maturity.

2Basic
  • Practice
    Make decisions that are primarily based on results that have documented assumptions, that use the correct data, and the appropriate statistical model.
    Outcome
    There is a basic level of confidence that decisions are based on objective criteria.
    Metric
    Number of decisions backed by data quality, the correct statistical model, and documented assumptions.
3Intermediate
  • Practices
    • Develop a standard decision matrix that includes reliable data capture, documented assumptions, and statistical models.
    • Include mechanisms that allow for decisions to be changed when new data becomes available, and that reduce bias from confirmation, over-confidence, and overfitting traps.
    Outcome
    Decisions that are based on the results of data analytics are improved, can be easily updated, and bias is reduced.
    Metrics
    • Percentage of decisions where bias is reduced.
    • Percentage of decisions updated as new data becomes available.
4Advanced
  • Practice
    Develop an advanced decision matrix to ensure that: — the data is captured for a specific purpose. — uses an appropriate statistical model.- has documented business assumptions.- can be quickly modified to take account of new data. — has eliminated bias, as far as is practical/cost-effective.
    Outcome
    There is a very high level of confidence in decisions based on the output of data analytics, and that they accurately reflect the most up-to-date information and business requirements.
    Metrics
    • Percentage of decisions that accurately reflect future requirements.
    • Percentage of investment decisions with a proven return on investment.
5Optimized
  • Practice
    Use feedback and the latest research available that includes vendors and industry best practices, to drive continuous improvement in how to reduce bias and improve decision-making.
    Outcome
    Research and feedback continually improve both the interpretation of results and decision-making.
    Metric
    Number of implemented changes that have led to improved decision-making.