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Philosophy 104 Probability and Bayes Theorem

Probability and Bayes Theorem. The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

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Page 1: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Philosophy 104Probability and Bayes Theorem

Page 2: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Common fallacies of probability: The Gambler’s Fallacy

◦ Is assuming that the odds of a single truly random event are affected in any way by previous iterations of the same or other truly random event.

Page 3: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Common fallacies of probability: The Gambler’s Fallacy

◦ Is assuming that the odds of a single truly random event are affected in any way by previous iterations of the same or other truly random event.

Ignoring the Law of Large Numbers◦ Is assuming there must be other explanations for very

improbable events.

Page 4: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Which hand are you more likely to be dealt?

Page 5: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Which hand are you more likely to be dealt?

This one? Or this one?

Page 6: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

The probability of each hand is exactly the same.

The odds of every specific five cards being dealt are the same as every other five specific cards.

No…

Page 7: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Humans focus on what represents success at poker, not on probability.

It’s true that the royal flush represents an unlikely degree of success at poker, while the nothing hand represents a common degree of failure.

Representativeness Bias

Page 8: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Maureen is a recent graduate of a small private college. She was active in student government, majored in English, and was the president of her sorority.

Consider:

Page 9: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Maureen is a recent graduate of a small private college. She was active in student government, majored in English, and was the president of her sorority.

Based on what you know, which of the following is more likely to be true of Maureen:

Consider:

Page 10: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Maureen is a recent graduate of a small private college. She was active in student government, majored in English, and was the president of her sorority.

Based on what you know, which of the following is more likely to be true of Maureen:◦ She is a bank teller◦ She is a bank teller and a feminist

Consider:

Page 11: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

The probability of two things both being true CANNOT be higher than the probability of one of those things being true.

The Conjunction Fallacy

Page 12: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

You live in a house. Lightning strikes that house on average once per week. Lightning struck today (Tuesday). What is the most likely day for the next one?A. TomorrowB. Next TuesdayC. They are all equally likely

Consider:

Page 13: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

You live in a house. Lightning strikes that house on average once per week. Lightning struck today (Tuesday). What is the most likely day for the next one?A.TomorrowB. Next TuesdayC. They are all equally likely

This is another instance of the conjunction fallacy.

Consider:

Page 14: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Yourself? Others?

Who is most dangerous to you?

Page 15: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Yourself? Others? (Global murder rate: 6ish)

Who is most dangerous to you?

Page 16: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Yourself? (Global suicide rate: 12ish) Others? (Global murder rate: 6ish)

You’re twice as much a risk to your life as everyone else.

Who is most dangerous to you?

Page 17: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Parents? Strangers?

Who is a child safest with?

Page 18: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Parents? (67% of kids murdered are killed by their parents)

Strangers? (3% of kids murdered are killed by strangers)

Who is a child safest with?

Page 19: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Humans suck at estimating probability

Moral of the story:

Page 20: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

a priori probability: ◦ The sort of probability achieved by dividing the

number of desired outcomes vs. the total number of outcomes.

◦ Applies to random events. Statistical probability:

◦ The frequency at which a given event is observed to occur.

◦ Applies to events that are not truly random.

Two Kinds of Probability

Page 21: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

What is the a priori probability (expressed as a percent) of a batter in baseball getting a hit in one at-bat?

An Example

Page 22: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

What is the a priori probability (expressed as a percent) of a batter in baseball getting a hit in one at-bat?◦ 50%

An Example

Page 23: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

What is the a priori probability (expressed as a percent) of a batter in baseball getting a hit in one at-bat?◦ 50%

What is the statistical probability (expressed as a percent) of a major league batter getting a hit in one at-bat?

An Example

Page 24: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

What is the a priori probability (expressed as a percent) of a batter in baseball getting a hit in one at-bat?◦ 50%

What is the statistical probability (expressed as a percent) of a major league batter getting a hit in one at-bat?◦ 25.4%

An Example

Page 25: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

• Wendy has tested positive for colon cancer. • Colon cancer occurs in .3% of the population

(.003 statistical probability)• If a person has colon cancer, there is a 90%

chance that they will test positive (.9 statistical probability of a true positive)

• If a person does not have colon cancer, then there is a 3% chance that they will test positive (3% statistical probability of a false positive)

• Given that Wendy has tested positive, what is the statistical probability that she has colon cancer?

A Case Study in probability:

Page 26: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

The correct answer is 8.3%

Answer:

Page 27: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

The correct answer is 8.3% Most people (including many doctors)

assume that the chances are much better than they really are that Wendy has colon cancer. The reason for this is that people tend to forget that a test must be absurdly specific to give a high probability of having a rare condition.

Answer:

Page 28: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

h = the hypothesise = the evidence for hPr(h) = the statistical probability of hPr(e|h) = the true positive rate of e as

evidence for hPr(e|~h) = the false positive rate of e as

evidence for h

Formal Statement of Bayes’s Theorem:

Pr(h|e) = Pr(h) * Pr(e|h)

[Pr(h) * Pr(e|h)] + [Pr(~h) * Pr(e|~h)]

Page 29: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

h ~h Total

e True Positives

False Positives

Pr(e)*Pop.

~e False Negatives

True Negatives

Pr(~e)*Pop.

Total Pr(h)*Pop. Pr(~h)*Pop.

Pop. = 10^n

The Table Method:

n = sum of decimal places in two most specific probabilities.

Page 30: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

h ~h Total

e = Pr(e|h) * [Pr(h)*Pop.]

= Pr(e|~h) * [Pr(~h)*Pop.]

Total of this row

~e = below - above

= below - above

Total of this row

Total Pr(h)*Pop. Pr(~h)*Pop.

Pop.

The Table Method:

Page 31: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

h ~h Total

e = Pr(e|h) * [Pr(h)*Pop.]

= Pr(e|~h) * [Pr(~h)*Pop.]

Total of this row

~e = below - above

= below - above

Total of this row

Total Pr(h)*Pop. Pr(~h)*Pop.

Pop.

The Table Method for Wendy:

Page 32: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

e = Pr(e|h) * [Pr(h)*Pop.]

= Pr(e|~h) * [Pr(~h)*Pop.]

Total of this row

~e = below - above

= below - above

Total of this row

Total Pr(h)*Pop. Pr(~h)*Pop.

Pop.

The Table Method for Wendy:

Page 33: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

= Pr(e|h) * [Pr(h)*Pop.]

= Pr(e|~h) * [Pr(~h)*Pop.]

Total of this row

~ test positive

= below - above

= below - above

Total of this row

Total Pr(h)*Pop. Pr(~h)*Pop.

Pop.

The Table Method for Wendy:

Page 34: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

= Pr(e|h) * [Pr(h)*Pop.]

= Pr(e|~h) * [Pr(~h)*Pop.]

Total of this row

~ test positive

= below - above

= below - above

Total of this row

Total .003*Pop. .997*Pop. 100,000

The Table Method for Wendy:

Page 35: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

= Pr(e|h) * [Pr(h)*Pop.]

= Pr(e|~h) * [Pr(~h)*Pop.]

Total of this row

~ test positive

= below - above

= below - above

Total of this row

Total 300 99,700 100,000

The Table Method for Wendy:

Page 36: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

= True Positive Rate (.9) * 300

= Pr(e|~h) * [Pr(~h)*Pop.]

Total of this row

~ test positive

= below - above

= below - above

Total of this row

Total 300 99,700 100,000

The Table Method for Wendy:

Page 37: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

270 = Pr(e|~h) * [Pr(~h)*Pop.]

Total of this row

~ test positive

= below - above

= below - above

Total of this row

Total 300 99,700 100,000

The Table Method for Wendy:

Page 38: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

270 = Pr(e|~h) * [Pr(~h)*Pop.]

Total of this row

~ test positive

30 = below - above

Total of this row

Total 300 99,700 100,000

The Table Method for Wendy:

Page 39: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

270 = False positive rate (.03) * 99,700

Total of this row

~ test positive

30 = below - above

Total of this row

Total 300 99,700 100,000

The Table Method for Wendy:

Page 40: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

270 2,991 Total of this row

~ test positive

30 = below - above

Total of this row

Total 300 99,700 100,000

The Table Method for Wendy:

Page 41: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

270 2,991 Total of this row

~ test positive

30 96,709 Total of this row

Total 300 99,700 100,000

The Table Method for Wendy:

Page 42: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

270 2,991 3,261

~ test positive

30 96,709 96,739

Total 300 99,700 100,000

The Table Method for Wendy:

Page 43: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC

Total

tests positive

270 (true positive)

2,991 (false positive)

3,261

~ test positive

30 (false negative)

96,709 (true negative)

96,739

Total 300 99,700 100,000

The Table Method for Wendy:

Page 44: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

has CC ~ have CC Totaltests positive

270 (true positive)

2,991 (false positive)

3,261

What are Wendy’s chances?

•Wendy’s Chances given that she tests positive are the true positives divided by the number of total tests. That is, 270/3261, which is .083 (8.3%).•Those who misestimate that probability forget that colon cancer is rarer than a false positive on a test.

Page 45: Probability and Bayes Theorem.  The Gambler’s Fallacy ◦ Is assuming that the odds of a single truly random event are affected in any way by previous

Note that testing positive (given the test accuracy specified) raises one’s chances of having the condition from .003(the base rate) to .083.

If we use .083 as the new base rate, those who again test positive then have a 73.1% chance of having the condition.

A third positive test (with .731 as the new base rate) raises the chance of having the condition to 98.8%

How about a second test?