Uncovering the Secrets of Statistics as Evidence in Business Valuations

Authors

Christopher C. Melcher

Date of this Version

2022

Document Type

Article

Citation

Court Review - Volume 58

Comments

Used by permission.

Abstract

Trials over the value of a business involve data, in large amounts, which must be presented in an understandable and impactful way. Statistics, when used properly, allow us to detect patterns or test theories we could not comprehend from a sea of numbers. But these shortcuts can be misused to create the appearance of accuracy, either through the expert’s failure to understand statistics or desire to deceive. This article explains, in simple terms, how to avoid these traps and spot a good statistic from a bad one.