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Chapter 5 Making sense of probabilities(第1页)

Chapter5Makingsenseofprobabilities

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Iwillsuggesthowprobabilityideashelpinmakingdethefaty,andalsodescribeceswheremisuandingsarise.

Odds?

&probabilitiesbeexpressedintermsofodds,andviceversa:aprobabilityof15isthesameasoddsof4to1against.Uerm‘odds’hasalsobeehegamblinguhingquitedifferehebookieswillpayifyourselectedhorsewins.SowheSeaTheStarswonthe2009Derbyatoddsof11to4,thatsimplymeansthatforeach£4stakedoheprofit,becauseitwon,is£11.Thefigures‘11to4’havenoautomatishipwiththeprobabilityofwinning.Theydependonthebookies’subjectiveassessmentsofthehorse’sublershavestaked.Theterm‘payoutprice’isamoreaccurateuseoflahesefigureslike11to4,but,regrettably,wehavetoaccepttheonusageof‘odds’inthisgambli.

Apayoutpriceistermed fairifitgivesaryadvaherparty,i.e.themeahegambleiszero.Thefairpayoutpriceforcorrectlypigthesuitofacardseleawell-shuffleddeckis3to1,asthosearetheexactoddsagainstacuess.

ercialgamblesarenotfair,iheyeveroperatewithoutahouseadvantage.ForrouletteinaUKo,whenall37outesareequallylikely,thepayoutpricefonasinglenumberisonly35to1,o1thatwouldbefair.Sothe meaurof£37is£36,giviage–thepertageofaexpe–of137,about2.7%.

Thisadvahesameformostoftheavailablebetsiheryonpairsofriples,groupsoffour,orsix,ortwelve,forevery£37youstake,yourmeaurnisalways£36.Butihestandardhouseadvantageisbigger,becauseofanadditionalslot,d38outes–withthesamepayoutpritheUK.Themeaurnon$38isgenerally$36,ahouseadvantageof238,or5.3%.

AdifferentwaytobetonhorseracesisthroughaToteorpari-mutuelsystem.Here,themoonallthehorsesispooled,aion–80%orsoison–issharedamongthosewhobackedthewinner,iioakes.TheToteadvahen20%,whicheverhorsewins.

Thesizeofthebookies’advantageinahorseradsonwhichhorsehappenstowin.Althoughbookiesmaymakealossorprofitonanysidatatellasstory:atapayoutpriceof6to4on,puntersshouldexpecttoloseabout10%oftheirstake;atapriceof5to1,expecttoloseabout13%;at10to1themeanlossfigureisover23%,andifyouspehorsespricedat50to1,expecttoloseabouttwo-thirdsofyourmoney.

Thisphenomenonisknowe-longshotbias.Puheirmoney moreslowlyfrombetsonthemorefavouredhorsestharactedbylargepayoutpriakersweredelightedwheheGrandNationalin2009atapriceof100to1.

Absoluterisk,orrelativerisk?

Supposethat,amroupofpeople,theceofdevelopialceroverthefiveyearsisquotedasohousaabouttenamong10,000peopletodeveloptheewdrugwouldreducetheeintwothousand:thenonlyaboutfiveamong10,000wouldsuccumbifthenewdrugisused.Thedrugpanycouldheadlispressrelease‘Riskofcercutby50%’.Andthatisaccurate:forea,theriskwouldbehalved.

Thisapproachdescribesa redurelativerisk,aicizedasputtingtoofavourableaioa.For,supposetheinitialriskhadbeeenmillion:gitby50%leadstoanewriskofoymillion,butiaheriskissosmallthatamong10,000people,wewouldexpectprettymuchthesamenumberofcases–zero.Despitetheriskbeihedrugwouldhardlyevermakeadifference.

Butsupposemembersofthisgrouphadamuchhigherce,say40%,ofdevelopingthecer.Adrugredugtheceto20%wouldqualifyforthesameheadline,andwouldcorrectlybehailedasamajh,asamong10,000people,fully2,000fewerwoulddevelopthecer.

&hanfotherelativerisk,itisusuallymfultolookattheabsoluterisk.Icaseabove,theabsesfrom0.1%to0.05%,sothedropis0.05%;inthesedcase,thedropisaminuscule0.000005%,whilewiththefihedropisanimpressive20%.

Aseoproceedistostatethemeaientswhoshouldtakethedrugiopreventohedisease–thereat,orhebetter,andthisthereciprocaloftheabsoluterisk.Intheexamplesabove,therespeTsaretwothousaymillion,andfive.

&wentymillioopreventonecaseofadiseaseishardtojustify.TheNNT,alongwithkreatmentdtheseverityoftheimpactofthedisease,allowsustomakesensibledesaboutalloghealthcareresources.

biningtinyprobabilities

Howlikelyisitthatatleastoneamonganenormousnumberofevents,eagatinyprobability,willoccur?Thisbethepertiionwheheprobabilityofaplexsystemsormaerymayfailifanyoneofamyriadofposfails;willtwoaircraftightanuclearpowerstatiodown?Theso-calledBorel-telliLemmasgivesomepoihematicalresultsshowthat,inmanyces,thekeyquantityisthe sumofallthosetinyprobabilities:ifitgrowswithoutbound,catastropheis.

Oneceisthatweeverbesatisfiedwithtsafetystandards.Itisessentialtouetomakeimprovements.

For,nhourstandards,thereissomenon-zeroprobabilityah:ahisvalue,ifitremainsunged(oreveooslowly)thesumovermanymonthswillgrowielylarge,anddisasterwilloe.

Asrammeofualimprovemeguaradisasterwillbeaverted:buttobeeversatisfiedwiththestatusquoistoinvitedoom.

Somemisuandings

(a)Whenadoctortellsapatientthatthereisa30%cethataparticularmedileasas,hemeasabout30%ofpatientstosuffer.However,thepatiehattheseeffectswillariseonabout30%oftheosonwhichshetakesthedrug.Thedoctoristhinkingaboutallthepatiehepatientaboutallthetimesshetakespills–theirreferenceclassesaredifferent.

(b)Howdoesthepubliterprettheclaim‘Thereisa30%inorrow’fromaTVweatherforecaster?Theforecastersexpecttheiraudieomakeafrequeio,inthelongrun,rainwouldfalldayon30%oftheoswhehersweresimilartothosenowseen.

Butwheiohosevieerehappywiththephrase‘a30%ce’,therereadofbeliefs.Somefeltthattheywerebeingtoldthatrainwouldfallover30%ofthecity’sarea;othersthatitwouldraininChicagofor30%oftheday;ahat30%istsexpectedittoraithatitwoulddefinitelyrain,withthe30%figureindigtheraihereweremanymismatchesbetweeheforecasterswerereferringto,aviewerswerethinkingabout.

(c)Ifasfewastwenty-threepeopleatraher,itismorelikelythannotthattwoofthemshareabirthday.Whehisfactforthefirsttime,theyarenormallysurprised,butusuallybeeprshowsthisclaimtobetrue.However,aminorityremainunced,becausetheymistakenlythinktheyhavebeentoldthat,iftheyawathertogether,itismorelikelythannotthatohersshares theirbirthday.Listencarefully!

(d)Supposethata,acceptedasfair,showsTailsoivetosses.SomewillclaimthattheossisalmosttobeHeads,perhapsbyinvokingsome‘Lawes’thatrequiresHeadstoeatintothisexcessofTailsimmediately.NosuchLawexists.TheLaweNumbersdoesimplyequalproportioails,butonlyinthelongrun:anysequeneTailsisdilutedbythethousandsoftossesbeforeandafter.

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