When business researchers analyze data, they often rely on assumptions to help make sense of what they find. But like anyone else, they can run into a whole lot of trouble if those assumptions turn out to be wrong – which may happen more often than they realize. That’s what we found in a recent study looking at financial data from about a thousand major U.S. companies.

One of the most common assumptions in data analysis is that the numbers will follow a normal distribution – a central concept in statistics often known as the bell curve. If you’ve ever looked at a chart of people’s heights, you’ve seen this curve: Most people cluster near the middle, with fewer at the extremes. It’s........

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