More of us should familiar with Bayesian probability, in which you acknowledge your priors and update frequently.
In predictions and finance, the average is more often close to the best than to the worst. So figure if you really want to be average. Poker, chess, earthquakes and economics are either so varied or still missing some underlying sense for predictions to be especially good; in contrast to other weather and the emergence of collective wisdom.
All that’s from the 2015 book “The Signal and the Noise: Why So Many Predictions Fail–but Some Don’t,” by pollster, odds-maker and very-online-person Nate Silver. This book was before Trump’s first election, and when Silver began his combative persona online. Back then, poker and gambling was a world of mathematical insights, presaging other books like one in 2018 by Annie Duke. It injected a kind of numeracy among the professional class, which was good, though we’ve been fighting against the numbers ever since.
As Silver, who was 37 when this book came out, wrote then: “This book is less about what we know then about the difference between what we know and what we think we know.”
Below I share my notes for future reference.
Continue reading Mind the difference between what you know, and what you think you know