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markfrankel18

Why People Mistake Good Deals for Rip-Offs : The New Yorker - 5 views

  • Last Saturday, an elderly man set up a stall near Central Park and sold eight spray-painted canvases for less than one five-hundredth of their true value. The art works were worth more than two hundred and twenty-five thousand dollars, but the man walked away with just four hundred and twenty dollars. Each canvas was an original by the enigmatic British artist Banksy, who was approaching the midpoint of a monthlong residency in New York City. Banksy had asked the man to sell the works on his behalf. For several hours, hundreds of oblivious locals and tourists ignored the quiet salesman, along with the treasure he was hiding in plain sight. The day ended with thirty paintings left unsold. One Banksy aficionado, certain she could distinguish a fake from the real thing, quietly scolded the man for knocking off the artist’s work.
  • What makes Banksy’s subversive stunt so compelling is that it forces us to acknowledge how incoherently humans derive value. How can a person be willing to pay five hundred times more than another for the same art work born in the same artist’s studio?
  • Some concepts are easy to evaluate without a reference standard. You don’t need a yardstick, for example, when deciding whether you’re well-rested or exhausted, or hot or cold, because those states are “inherently evaluable”—they’re easy to measure in absolute terms because we have sensitive biological mechanisms that respond when our bodies demand rest, or when the temperature rises far above or falls far below seventy-two degrees. Everyone agrees that three days is too long a period without sleep, but art works satisfy far too abstract a need to attract a universal valuation. When you learn that your favorite abstract art work was actually painted by a child, its value declines precipitously (unless the child happens to be your prodigious four-year-old).
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  • We’re swayed by all the wrong cues, and our valuation estimates are correspondingly incoherent. Banksy knew this when he asked an elderly man to sell his works in Central Park. It’s comforting to believe that we get what we pay for, but discerning true value is as difficult as spotting a genuine Banksy canvas in a city brimming with imitations.
markfrankel18

From Quarks to Quasars » Correlation vs. Causation: The Analysis of Data - 0 views

  • Between 1997 and 2007, the rate of autism and organic food sales has risen at the same rate. Obviously, this chart goes to prove that autism and eating organic foods are related to each other and you should avoid organics all together, right? Wrong. This chart is one of the best examples I’ve ever seen detailing how correlation and causation can have absolutely nothing to do with each other. In fact, in many cases, correlation and causation have nothing to do with each other – but what exactly does that mean?
  • In Latin, the phrase generally used is “cum hoc ergo propter hoc” which translates more literally to “With this therefore because of this.” The opposite, however, is true. Causation proves correlation, but not the other way around.
  • If a correlation is established, how can you determine causation? Are they caused by the same thing? Does one cause the other? Are they completely unrelated? In order for one event to cause another, they must be related. In other words, there must be some real mechanism connecting the two events (assuming the correlation isn’t completely coincidental). Here, the cause and effect mechanism must comply with the known laws of nature – this (at least) gives us somewhere to start.
markfrankel18

Why We Keep Playing the Lottery - Issue 4: The Unlikely - Nautilus - 1 views

  • Blind to the mathematical odds, we fall to the marketing gods.
  • “People just aren’t able to grasp 1 in 175 million,” Williams says. “It’s just beyond our experience—we have nothing in our evolutionary history that prepares us or primes us, no intellectual architecture, to try and grasp the remoteness of those odds.” And so we continue to play. And play.
  • It may seem easy to understand why we keep playing. As one trademarked lottery slogan goes, “Hey, you never know.” Somebody has to win. But to really understand why hundreds of millions of people play a game they will never win, a game with serious social consequences, you have to suspend logic and consider it through an alternate set of rules—rules written by neuroscientists, social psychologists, and economists. When the odds are so small that they are difficult to conceptualize, the risk we perceive has less to do with outcomes than with how much fear or hope we are feeling when we make a decision, how we “frame” and organize sets of logical facts, and even how we perceive ourselves in relation to others. Once you know the alternate set of rules, plumb the literature, and speak to the experts, the popularity of the lottery suddenly makes a lot more sense. It’s a game where reason and logic are rendered obsolete, and hope and dreams are on sale.
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  • Selling the lottery dream is possible because, paradoxically, the probabilities of winning are so infinitesimal they become irrelevant. Our brains didn’t evolve to calculate complex odds. In our evolutionary past, the ability to distinguish between a region with a 1 percent or 10 percent chance of being attacked by a predator wouldn’t have offered much of an advantage. An intuitive and coarse method of categorization, such as “doesn’t happen,” “happen sometimes,” “happens most of time,” “always happens,” would have sufficed, explains Jane L. Risen, an associate professor of Behavioral Science at the University of Chicago, Booth School of Business, who studies decision-making. Despite our advances in reason and mathematics, she says, we still often rely on crude calculations to make decisions, especially quick decisions like buying a lottery ticket.
  • In the conceptual vacuum created by incomprehensible odds, people are likely to experience magical thinking or superstition, play a hunch, or simply throw reason out the window all together, says George Loewenstein, a professor of economics and psychology at Carnegie Mellon. “Most of the weird stuff that you see with decision-making and risk happens with small probabilities,” he says.
  • But even fantasy will drop its hold on us if we always lose—a point Hargrove grasped from the start. Research has shown that positive reinforcement is a key in virtually all of the successful lotteries, notes the University of Lethbridge’s Williams. Lotteries that allow players to choose combinations of four or five numbers from a total of 60 numbers are popular, he says, because many players experience “the near miss,” which creates the illusion that they came close to winning the multi-million dollar jackpot. Most players don’t realize, however, that “near-miss” is an illusion. The odds of winning get worse with each successive match.
Lawrence Hrubes

BBC News - Fifty Shades of Grey boy, 11, causes stir at school - 1 views

  • A boy who dressed as a character from Fifty Shades of Grey was excluded from his school's World Book Day celebrations, according to his mother. Liam Scholes, 11, went to Sale High School as Christian Grey from the explicit novel, wearing a grey suit and carrying cable ties and an eye mask. His mother Nicola Scholes, a teacher, said the Greater Manchester school ruled the costume was "inappropriate" and excluded her son from photographs. The school is unavailable for comment. Ms Scholes said she feels Liam's outfit was actually more appropriate than some of the costumes worn by others. She said it was deemed "appropriate for a teacher to dress up as a serial killer" and "acceptable for kids to dress up as people that kill others" and "come in with [toy] guns".
erickjhonkdkk64

Buy Verified PayPal Account - UK - 0 views

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    Do you want to use a PayPal account for a long time? Buy verified paypal account from us. We will give you a paypal account that are fully verif ...
yelpreviews57

Which Is The Best Place For Buying Verified Paypal Accounts? - 0 views

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    Basically, we don't take too long time to complete your order. After receiving your order, we check the payment. If we receive the PayPal instantly then we complete the order within 1 hours. If you make an order for multiple USA verified personal or business accounts then we complete the order within 1 hours. But if you make an order for other countries PayPal then we take some extra time to complete your order. The delivery time like as 24 to 72 hours. Because, maximum time available USA verified PayPal account but other countries sometimes.
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