From the course: Tips to Boost Your Analytical Thinking

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Move beyond absolute numbers

Move beyond absolute numbers

- When working with numbers, there are two different ways to interpret values. Absolute versus relative. Absolute numbers are raw, independent values without comparison to anything else, like a distance of 150 kilometers or an account balance of $5,000. While relative numbers show how values relate to something else, like a new route to work being 50 kilometers less than the previous, or an account balance increasing by 20% over the last month. Absolute numbers alone are useless without context or comparison. So upgrade your analytical thinking by moving beyond their limitations. Sticking to relative numbers has many benefits, like contextual understanding. Relative numbers give clues into trends over time. Knowing that sales increased by 100 units last week doesn't tell me much. 100 additional units is very different for a company that sells 1,000 versus 10,000 units a week. A 10% increase in sales is more informative, because it shows a growth rate relative to previous performance…

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