I just read an interesting article called "Don't Get Blinded By the Numbers," in the March 2011 issue (I know, I know, I've fallen behind in my reading!) of Harvard Business Review. The author, Roger Martin, cites an information/decision process used by P&G's CEO, A.G. Lafley, where the numbers were somewhat misleading but the qualitative information was more informative. Martin quotes CEO Lafley as concluding:
"The analysis never tells you the answer. The best it can do is to inform your judgment."
In my 30+ years as a professional A/E marketer, I have seen a great many people suffering from analysis paralysis when there was too much information, when there were too many alternatives from which to choose, or when no answer was clearly "the right one." So they analyze and re-analyze to such depths that intelligent comparisons can no longer be made.
And they are OK with the idea of being stuck, looking at the same data over and over again until there is a clear answer!
They dither until the situation dictates a choice, or until someone else makes the choice for them. In either case, they can point to someone (or something) else as making the decision, and they can't be "punished" for making the wrong choice.
My gut conclusion is that analysis paralysis is the refuge of those who simply don't trust their own judgment, and are more afraid of the imagined consequences should they make the wrong choice, than they are of the consequences of doing nothing (which is also, after all, a choice!).