Storytelling vs. Statistics
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When we listen to stories we have the tendency to suspend disbelief in order to be entertained, says Paulos [John Allen]. But when we evaluate statistics, we are less willing to suspend disbelief in order that we are not duped. Storytelling vs. Statistics Paulos goes on to describe the two types of errors in formal statistics. Type I error occurs when we observe something that is not really there. A Type II error occurs when we fail to observe something that is actually there. According to Paulos, those who like to be entertained and wish to avoid making Type II error are more likely to prefer stories over statistics. Those who do not necessarily yearn for entertainment but are desperate to avoid Type I errors are apt to prefer statistics to stories. - From the book: Investing - The last liberal art