Intuition for Distribution Differences

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Intuition for distribution differences

Imagine every person in a country is assigned some sort of score, and a higher<br>score is better. I can&rsquo;t share the specifics around the score I&rsquo;m investigating<br>right now11 If you need a concrete measurement to latch on to, pretend it&rsquo;s<br>about life satisfaction, or maybe years between emergency department visits, or<br>something else along those lines., but on the population level it is collected<br>by a government agency. Here&rsquo;s the distribution of these scores for the<br>population in my country.

Since the curve does not start at the origin but a few percent up on the y axis,<br>we can conclude that a few percent of the population have a score of zero. That<br>doesn&rsquo;t mean they are bad or miserable people – there may be factors that make<br>zero the best score for them – but on average, a score of zero is worse than a<br>higher score.

We can also find the median score, a score that is higher than that of half of<br>the population, by finding the point halfway up the y axis. This is the 50 %<br>point, and it&rsquo;s right in between 0.4 and 0.6 on the y axis. Starting from there,<br>and then tracing a line right toward the distribution curve, and then turning<br>down toward the x axis, we find the median score – the score that corresponds to<br>the middle 50 % of the distribution. The median score is just over three.

Furthermore, a score of five or higher is achieved by only 10 % of the<br>population, since if we trace a line from five on the x axis up to the curve,<br>and then back to the y axis, it lands around the 90 % mark, meaning 90 % of the<br>population have a score lower than five.

Now comes the question: if we want our children to have a better opportunity to<br>achieve a high score, should we move to the big city? We can compare the score<br>distributions of city-dwellers with the general population.

We see that about the same number of people in the city have a score of zero,<br>but then it comes apart toward the higher scores. The scores of city-dwellers<br>are more stretched out toward the high end. The effect is that the distribution<br>curve for city-dwellers consistently sits below that for the general population.<br>This means city-dwellers overall have a higher score. When I look at comparisons<br>like these, I often make the mistake of thinking city people have lower scores,<br>because their curve is lower, but a lower cumulative distribution curve really<br>means higher values. When uncertain, we can perform the line-tracing exercises<br>from before to be sure.

There&rsquo;s also a treatment we can give our children that may improve their chances<br>of getting a good score. There are no national statistics on the scores of<br>people who have gotten this particular treatment, but I managed to collect<br>scores from a small but randomly selected sample.22 Bless laws that give the<br>public access to official records.

The curve for the treatment sample is first above and then below the<br>reference lines. That means the treatment probably does not improve the score<br>across the board, but neither does it make it worse. Rather, it means the<br>treatment group score has greater variation than the general<br>population.33 If the curve had been first below and then above the reference<br>lines, it would have meant that the treatment group had lower variation than the<br>general population. Most people in the treatment group do indeed get better<br>scores, but the bottom 33 % or so get worse scores. In particular, the treatment<br>appears to double the risk of getting a zero score.

Note how much more nuanced this view is than it would have been if we merely<br>compared the averages of each group.

The arithmetic means of the reference curves are 3.1 and 3.5, and the mean of<br>the treatment curve is 3.3. This makes it seem like the treatment sits right<br>in between the references, which would hint it makes no difference to the<br>score.

On the other hand, the medians of the references are 3.3 and 3.8, but the<br>median of the treatment is 4.0. That&rsquo;s probably not a significant difference,<br>but it&rsquo;s not as clearly a nothingburger as the arithmetic mean.

If we hadn&rsquo;t looked at the distributions visually like we did, then these two<br>observations would have seemed contradictory. But from the plot, it&rsquo;s clear the<br>increased variation explains both of these observations.

The next step would be to check if the differences we see are actually<br>statistically significant. For this I have made a great tool you can use, and I<br>will introduce it in a later article.

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