The Future of Rational Decision Making: A Discussion with Olivier Sibony
New Books in Science, Technology, and Society
00:00
How to Correct Bias
It seems that it's bias, but in fact, it's noise. It's very simple to correct bias. You need to know what the correct answer is. Take the underwriters again, right? Suppose that you've got ten underwriters and they give you prices for an enturance policy that are all over the map. Now, who is right and who is wrong? What is the true price of this insurance policy? If you had a way of knowing that, you wouldn't need the underwriters in the first place. So s so thi just makes me wonder what's easier to correct, bias or noise?
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