Erhan

7%
Flag icon
Certainly, positive and negative errors in a judgment about the same case will tend to cancel one another out, and we will discuss in detail how this property can be used to reduce noise. But noisy systems do not make multiple judgments of the same case. They make noisy judgments of different cases. If one insurance policy is overpriced and another is underpriced, pricing may on average look right, but the insurance company has made two costly errors.
Noise: A Flaw in Human Judgment
Rate this book
Clear rating
Open Preview