Noise: A Flaw in Human Judgment
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Read between July 31 - August 28, 2024
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how well can social scientists predict events in a family’s life?
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aim of the study was to measure the level of objective ignorance that remains in these life events after sociologists have done their work.
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more than 750 scientific articles have been written based on data from the Fragile Families study.
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focused on the predictability of six outcomes observed
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The achievement of the winning team in these competitions defines the state of the art at a point in time, which is always exceeded in the next competition.
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predictive accuracy remained disappointingly low.
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aggregates, which were much more predictable.
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Aggregate measures are widely known to be both more predictive and more predictable than are measures
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of single outcomes.
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conclusion of the challenge is that a large mass of predictive information does not suffice for the prediction of single events in people’s lives—and even th...
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8 million subjects over one hundred years, concluded that “social psychological effects typically yield a value of r [correlation coefficient] equal to .21.”
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A review of 708 studies in the behavioral and cognitive sciences found that only 3% of reported correlations were .50 or more.
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Statistical terms are often misleading to the lay reader, and “significant” may be the worst example of this.
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With a sufficiently large sample, a correlation can be at once very “significant” and too small to be worth discussing.
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“Researchers must reconcile the idea that they understand life trajectories with the fact that none of the predictions were very accurate.”
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equate understanding with prediction (or the absence of one with the absence of the other), they use the term understanding in a specific sense.
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a claim to understand something is a claim to understand what causes that thing.
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To understand is to describe a causal chain.
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correlation, the measure of predictive accuracy, is a measure of how much causation we can explain.
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causation does imply correlation.
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wherever there is causality, there is correlation.
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correlation, the accuracy of this prediction, is a measure of how much causality we understand.
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Objective ignorance sets a ceiling not only on our predictions but also on our understanding.
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In short, why do professionals—and why do we all—seem to underestimate our objective ignorance of the world?
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different mode of thinking, which comes more naturally to our minds, will be called here causal thinking.
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It feels, in fact, like the logical end of a chain of events, the inevitable denouement of a foreordained tragedy.
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Whatever the outcome (eviction or not), once it has happened, causal thinking makes it feel entirely explainable, indeed predictable.
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most things take place in the broad valley of the normal, where events are neither entirely expected nor especially surprising.
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the process of understanding reality is backward-looking.
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search stops when a good narrative is found.
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It is the occurrence of the event that tells you its cause.
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what we mean by understanding a story, and this is what makes reality appear predictable—in hindsight.
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under the illusion that it could have been anticipated.
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sense of understanding the world depends on our extraordinary ability to construct narratives that explain the events we observe. The search...
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first resort is to produce an explanation by filling a blank in our model of the world.
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Genuine surprise occurs only when routine hindsight fails.
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As we know from classic research on hindsight, even when subjective uncertainty does exist for a while, memories of it are largely erased when the uncertainty is resolved.
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two ways of thinking about events: statistical and causal. The causal mode saves us much effortful thinking by categorizing events in real time as normal or abnormal.
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Abnormal events quickly mobilize costly effort
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flow of events in the valley of the normal requires little mental work.
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Causal thinking avoids unnecessary effort while retaining the vigilance needed to detect abnormal events.
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statistical thinking is effortful.
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demands specialized training.
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The distinction between these two views is a recurring theme of this book.
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also call the outside view,
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causal mode comes much more naturally to us.
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The correlations of experience and brilliance with success are at best moderate and probably low.
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The reliance on flawed explanations is perhaps inevitable, if the alternative is to give up on understanding our world.
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contribute to overconfident predictions of the future.
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noise is a fundamentally statistical notion.
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