Saturday, August 6, 2016

97% of quitters employed by 3% who don't (misunderstood)

There is meme that pops up every so often that goes, "97% of the people who quit too soon are employed by the 3% who never gave up." This statement does not provide any new information.

Logic Problem

A lot of people read the quote as the 97% of the people vs 3% of the people, but really the quote states 97% of quitters and 3% of never gave up. Technically speaking, there is no mention how large the population is of quitters versus those who never gave up.

What can be extrapolated from the quote (assuming you trust the numbers) is that a very low percentage of those who did not quit are employed by a large percentage of those who did quit. Which in itself is quite reflective, because that would also mean that 3% of those who quit also became bosses, and that 97% of those who did not quit became someone elses. 

So technically, the statement is not a logic issue or problem. The issue/problem lies on the people either jumping to conclusions or misreading the statement.

Math Proof

Assuming life is binomial in that all people are either quitters (A) or non-quitters (B), and also that all people are either employees (C) or employers (D).

97% of A = C, therefore 3% of A = D
3% of B = D, therefore 97% of B = C

In conclusion, this statement works for anything that can be broken into two groups which provides no new analysis whether the numbers are correct or not.

1 comment:

  1. Its simpler that that, just divide the number of firms by the total number of working individuals at any given time.(US Labor Statistics)(of course this assumes everyone tried or considered sef-employment or entrepreneurship)