Noise: A Flaw in Human Judgment
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interjudge disparities increased significantly after 2005.
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Mandatory guidelines reduce bias as well as noise.
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law without order.
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First, judgment is difficult because the world is a complicated, uncertain place.
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Disagreement is unavoidable wherever judgment is involved.
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Second, the extent of these disagreements is much greater than we expect.
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System noise, that is, unwanted variability in judgments that should ideally be identical, can create rampant injustice, high economic costs, and errors of many kinds.
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Third, noise can be reduced.
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Fourth, efforts at noise reduction often raise objections and run into serious difficulties.
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judgment lotteries we talk about allocate nothing. They just produce uncertainty.
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the median difference in underwriting was 55%,
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A defining feature of system noise is that it is unwanted, and we should stress right here that variability in judgments is not always unwanted.
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Diversity of tastes is welcome and entirely expected.
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Disagreements make markets.
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System noise plagues many organizations: an assignment process that is effectively random often decides which doctor sees you in a hospital, which judge hears your case in a courtroom, which patent examiner reviews your application, which customer service representative hears your complaint, and so
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In noisy systems, errors do not cancel out. They add up.
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Noise was like a leak in the basement. It was tolerated not because it was thought acceptable but because it had remained unnoticed.
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The noise audits suggested that respected professionals—and the organizations that employ them—maintained an illusion of agreement while in fact disagreeing in their daily professional judgments.
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“Other people view the world much the way I do.” These beliefs, which have been called naive realism,
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developed confidence in her judgment mainly by exercising it.
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noise is a consequence of the informal nature of judgment. However, as we will see throughout this book, the amount of noise observed when an organization takes a serious look almost always comes as a shock. Our conclusion is simple: wherever there is judgment, there is noise, and more of it than you think.
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we operate under the wrong assumption that another expert would produce a similar judgment.”
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defined noise as undesirable variability in judgments of the same problem.
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From the perspective of noise reduction, a singular decision is a recurrent decision that happens only once.
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Judgment can therefore be described as measurement in which the instrument is a human mind.
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Implicit in the notion of measurement is the goal of accuracy—to approach truth and minimize error.
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Although accuracy is the goal, perfection in achieving this goal is never achieved even in scientific measurement, much less in judgment.
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Variability across individuals is a biological given;
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Within the same person, there is variability, too.
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Noise constitutes the variability of your results, analogous to the scatter of shots we saw earlier.
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In statistics, the most common measure of variability is standard deviation, and we will use it to measure noise in judgments.
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When we make a prediction, we attempt to come close to a true value.
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like a measuring instrument, the human mind is imperfect—it is both biased and noisy.
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Matters of judgment differ from matters of opinion or taste, in which unresolved differences are entirely acceptable.
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Selective attention and selective recall are a source of variability across people.
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Without being fully aware of what you were doing, your mind worked to construct a coherent impression
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Since each of these three steps in a complex judgment process entails some variability, we should not be surprised to find a lot of noise in answers
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In measurement terms, the first problem illustrates within-person reliability, and the second illustrates between-person reliability.
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The Gambardi exercise is an example of a nonverifiable predictive judgment, for two separate reasons: Gambardi is fictitious and the answer is probabilistic.
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Verifiability does not change the experience of judgment.
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We suggest this feeling is an internal signal of judgment completion, unrelated to any outside
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the confidence it implies is inconsistent with the messy, ambiguous, conflicting evidence provided.
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The aim of judgment, as you experienced it, was the achievement of a coherent solution.
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One approach to the evaluation of the process of judgment is to observe how that process performs when it is applied to a large number of cases.
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whether it conforms to the principles of logic or probability theory.
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two ways of evaluating a judgment: by comparing it to an outcome and by assessing the quality of the process that led to it.
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What they are effectively trying to achieve, regardless of verifiability, is the internal signal of completion provided by the coherence between the facts of the case and the judgment.
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Sentencing a felon is
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not a prediction. It is an evaluative judgment
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Evaluative judgments partly depend on the values and preferences of those making them, but they are not mere matters of taste or opinion.
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