Archive for Nassim Taleb

probably overthinking it [book review]

Posted in Books, Statistics, University life with tags , , , , , , , , , , , , , , , , , , , , on December 13, 2023 by xi'an

Probably overthinking it, written by Allen B. Downey (who wrote a series of books starting with Think, like Think Python, Think Bayes, Think Stats), belongs to this numerous collection of introductory books that aim at making statistics more palatable and enticing to the general public by making the fundamental concepts more intuitive and building upon real life examples. I would thus stop short of calling it “essential guide” as in the first flap of the dust jacket, since there exist many published books with a similar goal, some of which were actually reviews here. Now, there are ideas and examples therein I could borrow for my introductory stats course, except that I will cease teaching it next year! For instance, there are lots of examples related to COVID, which is great to engage (enrage?) the readers.

The book is quite pleasant to read, does not shy from mathematical formulae, and covers notions such as probability distributions, the Simpson, the Preston, the inspection, the Berkson paradoxes, and even some words on causality, sometimes at excessive lengths. (I have always been an adept of the concise church when it comes to textbook examples and fear that the multiplication of illustrations of a given concept may prove counterproductive.) The early chapters are heavily focussed on the Gaussian (or Normal) distribution. Making it appear as essential for conducting statistical analysis. When it does not, as in the ELO example, the explanations of a correction are less convincing.

I appreciated the book approach to model fit via the comparison of empirical cdfs with hypothetical ones. Also of primary interest is the systematic recourse to simulation, aka generative models, albeit without a systematic proper description. In the chapter (Chap 5) about durations, I think there are missed opportunities like the distributions of extremes (p 82) or the forgetfulness property of the Exponential distribution. Instead the focus is slightly diverging towards non-statistical issues on demography by the end of the chapter, with a potential for confusion between the Gomperz law and the Gomperz distribution. The Berkson paradox (Chap 6) is well-explained in terms of non-random populations (and reminded me when, years ago, when we tried to predict the first year success probability of undergrad applicants from their high school maths grade, the regression coefficient estimate ended up negative). Distributions of extremes do appear in Chap 8, if again seeking an ideal generic distribution seems to me rather misguided and misguiding. I would also argue that the author is missing the point of Taleb’s black swans by arguing in favour of a better modelling, when the later argues against the very predictability of extreme events in a non-stationary financial world… The chapter on fairness and fallacy (Chap 9) is actually about false positive/negative rates in different populations hence the ensuing unfairness (or the base fallacy). In that chapter there is no mention of Bayes (reserved for Think Bayes?!), but it is hitting hard enough at anti-vaxers (who will most likely not read the book). And does it again in the Simpson paradox chapter (Chap 10), whose proliferation is further stressed the following chapter on people becoming less racist or sexist or homophobic when they age, despite the proportion of racist/sexist/homophobic responses to a specific survey (GSS/Pew) increasing with age. This is prolonged into the rather minor final chapter.

Now that I have read the book, during a balmy afternoon in St Kilda (after an early start in the train to De Gaulle airport in freezing temperatures), I am a bit uncertain at what to make of it in terms of impact on the general public. For sure, the stories that accumulate chapter after chapter are nice and well argued, while introducing useful statistical concepts, but I do not see readers equipped enough to handle daily statistics with more than an healthy dose of scepticism, which obviously is a first step in the right direction!

Some nitpicking : the book is missing the historical connection to Quetelet’s “average man” when referring to the notion. And a potential explanation for the (approximate) log-Gaussianity of weights of individuals in a population through the fact that it is a volume, hence a third power of a sort.  Although birth weights are roughly Normal which kill my argument. I remain puzzled by the title, possibly missing a cultural reference (as there are tee-shirts sold with this sentence). It is the same as the name of a blog run by the author since 2011 and a fodder for the book. And the cover is terrible, breaking the words to fit the width making no sense, if I am not overthinking it! As often the book is rather US centric, although making no mention of US having much higher infant death rates than countries with similar GDPs when this data is discussed.

[Disclaimer about potential self-plagiarism: this post or an edited version will eventually appear in my Books Review section in CHANCE.]

Number savvy [book review]

Posted in Books, Statistics with tags , , , , , , , , , , , , , , , , , , , , , , , , , , , , , on March 31, 2023 by xi'an

“This book aspires to contribute to overall numeracy through a tour de force presentation of the production, use, and evolution of data.”

Number Savvy: From the Invention of Numbers to the Future of Data is written by George Sciadas, a  statistician working at Statistics Canada. This book is mostly about data, even though it starts with the “compulsory” tour of the invention(s) of numbers and the evolution towards a mostly universal system and the issue of measurements (with a funny if illogical/anti-geographical confusion in “gare du midi in Paris and gare du Nord in Brussels” since Gare du Midi (south) is in Brussels while Gare du Nord (north) in in Paris). The chapter (Chap. 3) on census and demography is quite detailed about the hurdles preventing an exact count of a population, but much less about the methods employed to improve the estimation. (The request for me to fill the short form for the 2023 French Census actually came while I was reading the book!)

The next chapter links measurement with socio-economic notions or models, like unemployment rate, which depends on so many criteria (pp. 77-87) that its measurement sounds impossible or arbitrary. Almost as arbitrary as the reported number of protesters in a French demonstration! Same difficulty with the GDP, whose interpretation seems beyond the grasp of the common reader. And does not cover significantly missing (-not-at-random) data like tax evasion, money laundering, and the grey economy. (Nitpicking: if GDP got down by 0.5% one year and up by 0.5% the year after, this does not exactly compensate!) Chapter 5 reflects upon the importance of definitions and boundaries in creating official statistics and categorical data. A chapter (Chap 6) on the gathering of data in the past (read prior to the “Big Data” explosion) is preparing the ground to the chapter on the current setting. Mostly about surveys, presented as definitely from the past, “shadows of their old selves”. And with anecdotes reminding me of my only experience as a survey interviewer (on Xmas practices!). About administrative data, progressively moving from collected by design to available for any prospection (or “farming”). A short chapter compared with the one (Chap 7) on new data (types), mostly customer, private sector, data. Covering the data accumulated by big tech companies, but not particularly illuminating (with bar-room remarks like “Facebook users tend to portray their lives as they would like them to be. Google searches may reflect more truthfully what people are looking for.”)

The following Chapter 8 is somehow confusing in its defence of microdata, by which I understand keeping the raw data rather than averaging through summary statistics. Synthetic data is mentioned there, but without reference to a reference model, while machine learning makes a very brief appearance (p.222). In Chapter 9, (statistical) data analysis is [at last!] examined, but mostly through descriptive statistics. Except for a regression model and a discussion of the issues around hypothesis testing and Bayesian testing making its unique visit, albeit confusedly in-between references to Taleb’s Black swan, Gödel’s incompleteness theorem (which always seem to fascinate authors of general public science books!), and Kahneman and Tversky’s prospect theory. Somewhat surprisingly, the chapter also includes a Taoist tale about the farmer getting in turns lucky and unlucky… A tale that was already used in What are the chances? that I reviewed two years ago. As this is a very established parable dating back at least to the 2nd century B.C., there is no copyright involved, but what are the chances the story finds its way that quickly in another book?!

The last and final chapter is about the future, unsurprisingly. With prediction of “plenty of black boxes“, “statistical lawlessness“, “data pooling” and data as a commodity (which relates with some themes of our OCEAN ERC-Synergy grant). Although the solution favoured by the author is centralised, through a (national) statistics office or another “trusted third party“. The last section is about the predicted end of theory, since “simply looking at data can reveal patterns“, but resisting the prophets of doom and idealising the Rise of the (AI) machines… The lyrical conclusion that “With both production consolidation and use of data increasingly in the ‘hands’ of machines, and our wise interventions, the more distant future will bring complete integrations” sounds too much like Brave New World for my taste!

“…the privacy argument is weak, if not hypocritical. Logically, it’s hard to fathom what data that we share with an online retailer or a delivery company we wouldn’t share with others (…) A naysayer will say nay.” (p.190)

The way the book reads and unrolls is somewhat puzzling to this reader, as it sounds like a sequence of common sense remarks with a Guesstimation flavour on the side, and tiny historical or technical facts, some unknown and most of no interest to me, while lacking in the larger picture. For instance, the long-winded tale on evaluating the cumulated size of a neighbourhood lawns (p.34-38) does not seem to be getting anywhere. The inclusion of so many warnings, misgivings, and alternatives in the collection and definition of data may have the counter-effect of discouraging readers from making sense of numeric concepts and trusting the conclusions of data-based analyses. The constant switch in perspective(s) and the apparent absence of definite conclusions are also exhausting. Furthermore, I feel that the author and his rosy prospects are repeatedly minimizing the risks of data collection on individual privacy and freedom, when presenting the platforms as a solution to a real time census (as, e.g., p.178), as exemplified by the high social control exercised by some number savvy dictatures!  And he is highly critical of EU regulations such as GDPR, “less-than-subtle” (p.267), “with its huge impact on businesses” (p.268). I am thus overall uncertain which audience this book will eventually reach.

[Disclaimer about potential self-plagiarism: this post or an edited version will potentially appear in my Books Review section in CHANCE.]

What are the chances of that?

Posted in Books, pictures, Statistics, University life with tags , , , , , , , , , , , , , , , , on May 13, 2022 by xi'an

What are the chances that I review a book with this title, a few months after reviewing a book called What is luck?! This one is written by Andrew Elliott, whose Is that a big number? I reviewed a wee bit earlier… And that the cover of this book involves a particularly unlucky sequence of die as in my much earlier review of Krysz Burdzy’s book? (About 10⁻⁶ less likely than the likeliest draw!)

The (relative) specificity of this book is to try to convey the notions of chance and uncertainty to the general public, more in demonstrating that our intuition is most often wrong by examples and simulations, than in delving into psychological reasons as in Barbara Blatchley’s book. The author advances five dualities that underly our (dysfunctional) relation to chance: individual vs. collective, randomness vs. meaning, foresight vs. insight, uniformity vs. variability, and disruption vs. opportunity.

“News programmes clearly understand that the testimonies of individuals draw better audiences than the summaries of statisticians.” (p. xvii)

Some of the nice features of the book  are (a) the description of a probabilistic problem at the beginning of each chapter, to be solved at the end, (b) the use of simulation experiments, represented by coloured pixels over a grey band crossing the page, including a section on pseudorandom generators [which is less confusing that the quote below may indicate!], (c) taking full advantage of the quincunx apparatus, and (d) very few apologies for getting into formulas. And even a relevant quote of Taleb’s Black Swan about the ludic fallacy. On the other hand, the author spends quite a large component of the book on chance games, exhibiting a ludic tendency! And contemplates biased coins, while he should know better! The historical sections may prove too much for both informed and uninformed readers. (However, I learned that the UK Government had used a form of lottery to pay interests on premium bonds.) And the later parts are less numerical and quantified, even though the author brings in the micromort measurement [invented by Ronald Howard and] favoured by David Spiegelhalter. Who actually appears to have inspired several other sections, like the one on coincidences (which remains quite light in its investigation!). I finished the book rather quickly by browsing though mostly anecdotes and a lesser feel of a unified discourse. I did not find the attempt to link with the COVID pandemic, which definitely resets our clocks on risk, particularly alluring…

“People go to a lot of trouble to generate truly random numbers—sequences that are impossible to predict.” (p.66)

The apparition of the Normal distribution is somewhat overdone and almost mystical, if the tone gets more reasonable by the end of the corresponding chapter.

“…combining random numbers from distributions that really have no business being added together (…) ends up with a statistic that actually fits the normal distribution quite well.” (p.83)

The part about Bayes and Bayesian reasoning does not include any inference, with a rather duh! criticism of prior modelling.

“If you are tempted to apply a group statistic derived from a broad analysis to a more narrow purpose, you run the risk of making an unfair judgement.” (p.263)

The section about Xenakis’ musical creations as a Markov process was most interesting (and novel to me). I also enjoyed the shared cultural entries, esp. literary ones. Like citing the recent Chernobyl TV drama. Or Philip K. Dick’s Do Androids Dream of Electric Sheep? Or yet Monty Python’s Life of Brian. Overall, there is enough trivia and engagement to keep reading the book till its end!

Texan black swan

Posted in Books, pictures with tags , , , , , , , , on September 12, 2017 by xi'an

“Un événement improbable aux conséquences d’autant plus désastreuses que l’on ne s’y est pas préparé.”

This weekend, there was a short article in Le Monde about the Harvey storm as a Texan illustration of Taleb’s black swan. An analysis that would imply every extreme event like this “once-in-a-thousand year” event (?) can be called a black swan… “An improbable event with catastrophic consequences, the more because it had not been provisioned”, as the above quote translates. Ironically, there is another article in the same journal, about the catastrophe being “ordinary” and “not unexpected”! While such massive floods are indeed impacting a huge number of people and companies, because the storm happened to pour an unusual amount of rain right on top of Houston, they indeed remain within the predictable and not so improbable in terms of the amount of water deposited in the area and in terms of damages, given the amount and style of construction over flood plains. For instance, Houston is less than 50 feet above sea level, has fairly old drainage and pipe systems, and lacks a zoning code. With mostly one or two-story high buildings rather than higher rises. (Incidentally, I appreciated the juxtaposition of the article with the add for Le Monde des Religions and its picture of a devilesque black goat!)

 

book based on a single well-known concept [smbc repost]

Posted in Books, Kids with tags , , , , , on December 26, 2016 by xi'an