Beware the Inferential Leap From a Single Data Point

If you are trying to understand the complex underlying personal characteristics of your client, a potential employee, or even yourself, it goes without saying that you need a good tool (i.e., a good assessment) to measure these not-so-obvious personal features. This is the heart of psychometrics: the science of measuring individual differences (that is, our unique personal characteristics). Typically psychometrics involves gathering multiple responses related to a characteristic to ensure you’re really measuring what you[…]

Social Media & Hiring Trusted Advisors

Would you hire a professional advisor based on his or her social media profile? While examining the tables and data in the chapter titled “Time, Energy, and Money” in The Millionaire Next Door, I reread the section titled “Who are your suppliers?” It reads in part: How did you hire your household’s financial advisor? Did you list the position in the help-wanted section of your local newspaper? Did you evaluate the stacks of resumes your advertisement[…]