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Douglas W. Hubbard

“As with the “You can prove anything with statistics” claim, I usually find that the people making these other irrational claims don’t even quite mean what they say, and their own choices will betray their stated beliefs. If you ask someone to enter a betting pool to guess the outcome of the number of heads in 12 coin tosses, even the person who claims odds can’t be assigned will prefer the numbers around or near six heads. The person who claims to accept no risk at all will still fly to Moscow using Aeroflot (an airline with a safety record worse than any U.S. carrier) to pick up a $1 million prize.

In response to the skeptics of statistical models he met in his own profession, Paul Meehl proposed a variation on the game of Russian roulette.15 In his modified version there are two revolvers: one with one bullet and five empty chambers and one with five bullets and one empty chamber. Meehl then asks us to imagine that he is a “sadistic decision-theorist” running experiments in a detention camp. Meehl asks, “Which revolver would you choose under these circumstances? Whatever may be the detailed, rigorous, logical reconstruction of your reasoning processes, can you honestly say that you would let me pick the gun or that you would flip a coin to decide between them?

Meehl summarized the responses: “I have asked quite a few persons this question, and I have not yet encountered anybody who alleged that he would just as soon play his single game of Russian roulette with the five-shell weapon.” Clearly, those who answered Meehl’s question didn’t really think probabilities were meaningless. As we shall see before the end of this chapter, Meehl’s hypothetical game is less “hypothetical” than you might think.”

Douglas W. Hubbard, How to Measure Anything: Finding the Value of "Intangibles" in Business
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