Jun 12 2022
Perspectives On Probability In Operations
The spirited discussions on LinkedIn about whether probabilities are relative frequencies or quantifications of beliefs are guaranteed to baffle practitioners. They come up in threads about manufacturing quality, supply-chain management, and public health, and do not generate much light. Their participants trade barbs without much civility, and without actually exchanging on substance.
The latest one, by Alexander von Felbert, is among the more thoughtful, and therefore unlikely to inspire rants. I do, however, fault it with using words like “aleatory” or “epistemic” that I don’t think are helpful. I am trying to discuss it here in everyday language, and to apply the concepts to numerically specific cases, with an eye to operations.
While there are genuinely great and not-so-great ideas, the root of the most violent disagreements is elsewhere, with individuals generalizing from different experience bases. You may map probability to reality differently depending on whether you are developing drugs in the pharmaceutical industry, enhancing yield in a semiconductor process, or driving down dppms in auto parts. The math doesn’t care as long as you follow its rules, and it doesn’t invalidate other interpretations.
Mar 25 2024
A Review of Bernoulli’s Fallacy
Aubrey Clayton’s book, Bernoulli’s Fallacy, covers the same ground as Jaynes’s Probability Theory: The Logic of Science, for a broader audience. It is also an easier read, at 347 pages versus 727. In addition, the author also discusses the socio-political context of mathematical statistics in the late 19th and early 20th centuries. According to his account, mistakes ranged from justice and medicine to social sciences. It ends with recommendations to avoid repeating them.
This book is definitely a shot from the Bayesian side in the war between Bayesians and frequentists. It is tearing apart the world of statisticians but most data scientists have no wish to enlist on either side. They should nonetheless read it, for challenging ideas and historical background.
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By Michel Baudin • Book reviews • 3 • Tags: Bayesian Statistics, Frequentist statistics