Analytics Magazine Analytics Magazine, May/June 2014 | Page 30

ME AS URIN G A NY T H I NG Almost everyone can be trained to be an expert “probability estimator.” perceived to be immeasurable, and why all three are mistaken. 2. Do the math. A key point in every edition of the book was that we measure to feed quantitative decision models, and that even naïve quantitative models easily outperform human experts in a variety of estimation and decision problems. In a meta-study of 150 studies comparing expert judgment to statistical models, the models clearly outperformed the experts in 144 of the cases [Meehl, 1975]. More and more research confirms this. The third edition adds the findings of Philip Tetlock’s giant undertaking to track more than 82,000 forecasts of 284 experts over a 20-year period. From this, Tetlock could confidently state, “It is impossible to find any domain in which humans clearly outperformed crude extrapolation algorithms, less still sophisticated statistical ones” [Tetlock, 2006]. The book reviews additional research to show that, unless we do the math, most people, even statistically trained experts, are susceptible to common inference errors. 3. Just about everyone can be trained to assess odds like a pro. Almost everyone can be trained to be an expert “probability estimator.” Building on the work of others in decision psychology [Lichtenstein and B. Fischhoff, 1980], HDR started providing “calibrated probability assessment” training in the mid-1990s. The third edition included data from more than 900 people calibrated by HDR. The data consistently 30 | A N A LY T I C S - M A G A Z I N E . O R G W W W. I N F O R M S . O R G