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                                                       January 01, 2014
Daniel Kahneman, "Thinking, Fast and Slow" (2011),     January 05, 2014
Ch 21 "Intuitions vs Formulas"                       
p.227 or so (hardback)                               
                                                     
Kahneman gets really interesting at this stage.     FAST_SLOW_AND_SLOWER
He's beginning to make prescriptions on how to       
make decisions given the limits of the two           
"systems".                                           
                                                     
He presents an insight from the world of medical diagnosis:
mechanically running through a checklist often works better
than going by the impressions of the medical staff, no
matter how well trained their expert intuition.      
                                                     
                                                         See:
                                                         "A Checklist Manifesto"
                                                         Atul Gawande
There's a long and personal (for him) anecdote at    
the end of this chapter, of working out methods of   
predicting the success of soldiers in the Israeli    
army in 1955.                                        
                                                     
He settles on an approach of looking for detailed,   
easily measurable parameters (typically around 6)    Note: some aspects
that can be combined in a simple formula to get a    of this approach are
prediction.                                          proven, others
                                                     perhaps less so.
Two features are of interest:                        
                                                     
(1)  the weighting of the parameters can be equal:   
     parameter weights are over-rated, and           
     don't help as much as is often assumed.         
                                                     
(2)  he does not exclude the examiner's inuition,    
     but treats it as another input to be weighted.  
                                                     
                                                     
He presents an accidental discovery (how well        
confirmed, I'm not sure at present), that an         
interviewers intuition works better if they're       
first asked to go through a standard set of         SUPERFORECASTING
detailed questions.                                  
                                                     
   So that's another area of interest:               
   what can you do to improve your intuition?        
                                                 SUPERFORECASTING
                                                     
      My attempt at firming up the                   
      process Kahneman discusses:                    
                                                     
      o  first use your intuition to identify        
         parameters that are likely to apply.        
                                                     
      o  make no effort to determine                 
         relative strengths: if it's in it's in.     
                                                     
      o  include one last parameter,                 
         the educated guess of an expert observer.   
                                                     
      o  determine a predictive factor from this,    
         and over time make observations to check    
         how well the predictions have worked.       
                                                     
                                                     
  Note that this relies on certain observable        
  inputs, and a well-defined output.                 
                                                     
  One thing I don't quite follow from Kahneman's     
  account: they were interested in predicting        
  a candidate's future performance as a soldier:    The difficulty: many of
  how was that measured to see how well their       the things they're
  technique worked?                                 testing might be affinity
                                                    tests in disguise, and if
  (Could it be that Kahneman has                    the "success" parameter
  overapplied techniques that work well             is similarly skewed it
  with medical problems, but don't map              could be this grand
  quite that well to social ones?)                  result is effectively "we
                                                    like people like us".
          This approach allows a role for            
          intuition, but it (a) tries to             
          guide it and (b) it's a strictly           
          limited role:                              
                                                     
          Kahneman suggests that six parameters       
          is typically a reasonable number to                       
          work with, and treating intuition as                                
          just one more parameter puts it at                              
          around 15% of the decision.                        
                                                             
          Except of course, that the                         
          selection of the other parameters                  
          is also a matter of intuition.                     
                                                         

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