4 ms·
Estimating uncertainty is preferred, but if you have people who insist on a single number, then teach them that it should be the median instead of the mean. Mea
by m12k 5y ago
Estimating uncertainty is preferred, but if you have people who insist on a single number, then teach them that it should be the median instead of the mean. Means tend to overvalue "moonshots" where there's a 99% chance you lose money, but if the payoff in that 1% where you win is large enough, it can still result in a positive mean. And a mean can often be an outcome that isn't actually possible, but falls between several options, while a median is always an outcome that can actually happen, and there's ~50% chance you'll get a better one.
- tonyarkles 5y agoHeh, when people ask for a single number estimate, I give them mu + 3-sigma. If you’re curious, I’ve got a sibling comment that describes a bit more.