Experts often communicate probabilities verbally (e.g., unlikely) rather than numerically (e.g., 25% chance). Although criticism has focused on the vagueness of verbal probabilities, less attention has been given to the potential unintended, biasing effects of verbal probabilities in communicating probabilities to decision-makers. In four experiments (Ns = 201, 439, 435, 696), we showed that probability format (i.e., verbal vs. numeric) influenced participants’ inferences and decisions following a hypothetical financial expert’s forecast. We observed a format effect for low probability (...) forecasts: verbal probabilities were interpreted more pessimistically than numeric equivalents. We attributed the difference to directionality, a linguistic property that biases attention toward an outcome. In the high-probability conditions, the directionality of verbal and numeric probabilities aligned (both were positive), whereas they differed in the low-probability conditions (verbal probabilities were more negative). Participants inferred recommendations congruent with the communicated direction and these inferences mediated the effect of probability format on decisions. (shrink)

Two kinds of probability expressions, verbal and numerical, have been used to characterize the uncertainty that people face. However, the question of whether verbal and numerical probabilities are cognitively processed in a similar manner remains unresolved. From a levels-of-processing perspective, verbal and numerical probabilities may be processed differently during early sensory processing but similarly in later semantic-associated operations. This event-related potential (ERP) study investigated the neural processing of verbal and numerical probabilities in risky choices. The (...) results showed that verbal probability and numerical probability elicited different N1 amplitudes but that verbal and numerical probabilities elicited similar N2 and P3 waveforms in response to different levels of probability (high to low). These results were consistent with a level-of-processing framework and suggest some internal consistency between the cognitive processing of verbal and numerical probabilities in risky choices. Our findings shed light on possible mechanism underlying probability expression and may provide the neural evidence to support the translation of verbal to numerical probabilities (or vice versa). (shrink)

Keynes's A Treatise on Probability (Keynes, 1921) contains some quite unusual concepts, such as non-numerical probabilities and the ‘weights of the arguments’ that support probability judgements. Their controversial interpretation gave rise to a huge literature about ‘what Keynes really did mean’, also because Keynes's later views in macroeconomics ultimately rest on his ideas on uncertainty and expectations formation.

In this paper, we illustrate some serious difficulties involved in conveying information about uncertain risks and securing informed consent for risky interventions in a clinical setting. We argue that in order to secure informed consent for a medical intervention, physicians often need to do more than report a bare, numerical probability value. When probabilities are given, securing informed consent generally requires communicating how probability expressions are to be interpreted and communicating something about the quality and quantity of (...) the evidence for the probabilities reported. Patients may also require guidance on how probability claims may or may not be relevant to their decisions, and physicians should be ready to help patients understand these issues. (shrink)

We describe a dual-process theory of how individuals estimate the probabilities of unique events, such as Hillary Clinton becoming U.S. President. It postulates that uncertainty is a guide to improbability. In its computer implementation, an intuitive system 1 simulates evidence in mental models and forms analog non-numerical representations of the magnitude of degrees of belief. This system has minimal computational power and combines evidence using a small repertoire of primitive operations. It resolves the uncertainty of divergent evidence for single (...) events, for conjunctions of events, and for inclusive disjunctions of events, by taking a primitive average of non-numerical probabilities. It computes conditional probabilities in a tractable way, treating the given event as evidence that may be relevant to the probability of the dependent event. A deliberative system 2 maps the resulting representations into numerical probabilities. With access to working memory, it carries out arithmetical operations in combining numerical estimates. Experiments corroborated the theory's predictions. Participants concurred in estimates of real possibilities. They violated the complete joint probability distribution in the predicted ways, when they made estimates about conjunctions: P, P, P, disjunctions: P, P, P, and conditional probabilities P, P, P. They were faster to estimate the probabilities of compound propositions when they had already estimated the probabilities of each of their components. We discuss the implications of these results for theories of probabilistic reasoning. (shrink)

Over the past two decades, gamblers have begun taking mathematics into account more seriously than ever before. While probability theory is the only rigorous theory modeling the uncertainty, even though in idealized conditions, numerical probabilities are viewed not only as mere mathematical information, but also as a decision-making criterion, especially in gambling. This book presents the mathematics underlying the major games of chance and provides a precise account of the odds associated with all gaming events. It begins by (...) explaining in simple terms the meaning of the concept of probability for the layman and goes on to become an enlightening journey through the mathematics of chance, randomness and risk. It then continues with the basics of discrete probability, combinatorics and counting arguments for those interested in the supporting mathematics. These mathematic sections may be skipped by readers who do not have a minimal background in mathematics; these readers can skip directly to the Guide to Numerical Results to pick the odds and recommendations they need for the desired gaming situation. Doing so is possible due to the organization of that chapter, in which the results are listed at the end of each section, mostly in the form of tables. The chapter titled The Mathematics of Games of Chance presents these games not only as a good application field for probability theory, but also in terms of human actions where probability-based strategies can be tried to achieve favorable results. Through suggestive examples, the reader can see what are the experiments, events and probability fields in games of chance and how probability calculus works there. The main portion of this work is a collection of probability results for each type of game. Each game s section is packed with formulas and tables. Each section also contains a description of the game, a classification of the gaming events and the applicable probability calculations. The primary goal of this work is to allow the reader to quickly find the odds for a specific gaming situation, in order to improve his or her betting/gaming decisions. Every type of gaming event is tabulated in a logical, consistent and comprehensive manner. The complete methodology and complete or partial calculations are shown to teach players how to calculate probability for any situation, for every stage of the game for any game. Here, readers can find the real odds, returned by precise mathematical formulas and not by partial simulations that most software uses. Collections of odds are presented, as well as strategic recommendations based on those odds, where necessary, for each type of gaming situation. The book contains much new and original material that has not been published previously and provides great coverage of probabilities for the following games of chance: Dice, Slots, Roulette, Baccarat, Blackjack, Texas Hold em Poker, Lottery and Sport Bets. Most of games of chance are predisposed to probability-based decisions. This is why the approach is not an exclusively statistical one, but analytical: every gaming event is taken as an individual applied probability problem to solve. A special chapter defines the probability-based strategy and mathematically shows why such strategy is theoretically optimal.". (shrink)

This article outlines a theory of naive probability. According to the theory, individuals who are unfamiliar with the probability calculus can infer the probabilities of events in an extensional way: They construct mental models of what is true in the various possibilities. Each model represents an equiprobable alternative unless individuals have beliefs to the contrary, in which case some models will have higher probabilities than others. The probability of an event depends on the proportion of models in (...) which it occurs. The theory predicts several phenomena of reasoning about absolute probabilities, including typical biases. It correctly predicts certain cognitive illusions in inferences about relative probabilities. It accommodates reasoning based on numerical premises, and it explains how naive reasoners can infer posterior probabilities without relying on Bayes's theorem. Finally, it dispels some common misconceptions of probabilistic reasoning. (shrink)

While pragmatic arguments for numerical probability axioms have received much attention, justifications for axioms of qualitative probability have been less discussed. We offer an argument for the requirement that an agent’s qualitative judgments be probabilistically representable, inspired by, but importantly different from, the Money Pump argument for transitivity of preference and Dutch book arguments for quantitative coherence. The argument is supported by a theorem, to the effect that a subject is systematically susceptible to dominance given her preferred (...) acts, if and only if the subject’s comparative judgments preclude representation by a standard probability measure. (shrink)

Numerous studies have convincingly shown that prospect theory can better describe risky choice behavior than the classical expected utility model because it makes the plausible assumption that risk aversion is driven not only by the degree of sensitivity toward outcomes, but also by the degree of sensitivity toward probabilities. This article presents the results of an experiment aimed at testing whether agents become more sensitive toward probabilities over time when they repeatedly face similar decisions, receive feedback on the consequences of (...) their decisions, and are given ample incentives to reflect on their decisions, as predicted by Plott’s Discovered Preference Hypothesis (DPH). The results of a laboratory experiment with N = 62 participants support this hypothesis. The elicited subjective probability weighting function converges significantly toward linearity when respondents are asked to make repeated choices and are given direct feedback after each choice. Such convergence to linearity is absent in an experimental treatment where respondents are asked to make repeated choices but do not experience the resolution of risk directly after each choice, as predicted by the DPH. (shrink)

In everyday life we either express our beliefs in all-or-nothing terms or we resort to numerical probabilities: I believe it's going to rain or my chance of winning is one in a million. The Stability of Belief develops a theory of rational belief that allows us to reason with all-or-nothing belief and numerical belief simultaneously.

Numerical probabilities are eliminated in favor of qualitative notions, with an eye to isolating what it is about probabilities that is essential to judgements of acceptability. A basic choice point is whether the conjunction of two propositions, each acceptable, must be deemed acceptable. Concepts of acceptability closed under conjunction are analyzed within Keisler's weak logic for generalized quantifiers — or more specifically, filter quantifiers. In a different direction, the notion of a filter is generalized so as to allow sets (...) with probability non-infinitesimally below 1 to be acceptable. (shrink)

This is an introductory 2001 textbook on probability and induction written by one of the world's foremost philosophers of science. The book has been designed to offer maximal accessibility to the widest range of students and assumes no formal training in elementary symbolic logic. It offers a comprehensive course covering all basic definitions of induction and probability, and considers such topics as decision theory, Bayesianism, frequency ideas, and the philosophical problem of induction. The key features of this book (...) are a lively and vigorous prose style; lucid and systematic organization and presentation of ideas; many practical applications; a rich supply of exercises drawing on examples from such fields as psychology, ecology, economics, bioethics, engineering, and political science; numerous brief historical accounts of how fundamental ideas of probability and induction developed; and a full bibliography of further reading. (shrink)

In a recent paper Ronald Meester and Timber Kerkvliet argue by example that infinite epistemic regresses have different solutions depending on whether they are analyzed with probability functions or with belief functions. Meester and Kerkvliet give two examples, each of which aims to show that an analysis based on belief functions yields a different numerical outcome for the agent’s degree of rational belief than one based on probability functions. In the present paper we however show that the (...) outcomes are the same. The only way in which probability functions and belief functions can yield different solutions for the agent’s degree of belief is if they are applied to different examples, i.e. to different situations in which the agent finds himself. (shrink)

In concrete applications of probability, statistical investigation gives us knowledge of some probabilities, but we generally want to know many others that are not directly revealed by our data. For instance, we may know prob(P/Q) (the probability of P given Q) and prob(P/R), but what we really want is prob(P/Q&R), and we may not have the data required to assess that directly. The probability calculus is of no help here. Given prob(P/Q) and prob(P/R), it is consistent with (...) the probability calculus for prob(P/Q&R) to have any value between 0 and 1. Is there any way to make a reasonable estimate of the value of prob(P/Q&R)? A related problem occurs when probability practitioners adopt undefended assumptions of statistical independence simply on the basis of not seeing any connection between two propositions. This is common practice, but its justification has eluded probability theorists, and researchers are typically apologetic about making such assumptions. Is there any way to defend the practice? This paper shows that on a certain conception of probability — nomic probability — there are principles of “probable probabilities” that license inferences of the above sort. These are principles telling us that although certain inferences from probabilities to probabilities are not deductively valid, nevertheless the second-order probability of their yielding correct results is 1. This makes it defeasibly reasonable to make the inferences. Thus I argue that it is defeasibly reasonable to assume statistical independence when we have no information to the contrary. And I show that there is a function Y(r,s:a) such that if prob(P/Q) = r, prob(P/R) = s, and prob(P/U) = a (where U is our background knowledge) then it is defeasibly reasonable to expect that prob(P/Q&R) = Y(r,s:a). Numerous other defeasible inferences are licensed by similar principles of probable probabilities.. (shrink)

Numerous studies have convincingly shown that prospect theory can better describe risky choice behavior than the classical expected utility model because it makes the plausible assumption that risk aversion is driven not only by the degree of sensitivity toward outcomes, but also by the degree of sensitivity toward probabilities. This article presents the results of an experiment aimed at testing whether agents become more sensitive toward probabilities over time when they repeatedly face similar decisions, receive feedback on the consequences of (...) their decisions, and are given ample incentives to reflect on their decisions, as predicted by Plott’s Discovered Preference Hypothesis (DPH). The results of a laboratory experiment with N = 62 participants support this hypothesis. The elicited subjective probability weighting function converges significantly toward linearity when respondents are asked to make repeated choices and are given direct feedback after each choice. Such convergence to linearity is absent in an experimental treatment where respondents are asked to make repeated choices but do not experience the resolution of risk directly after each choice, as predicted by the DPH. (shrink)

This paper seeks to defend the following conclusions: The program advanced by Carnap and other necessarians for probability logic has little to recommend it except for one important point. Credal probability judgments ought to be adapted to changes in evidence or states of full belief in a principled manner in conformity with the inquirer’s confirmational commitments—except when the inquirer has good reason to modify his or her confirmational commitment. Probability logic ought to spell out the constraints on (...) rationally coherent confirmational commitments. In the case where credal judgments are numerically determinate confirmational commitments correspond to Carnap’s credibility functions mathematically represented by so—called confirmation functions. Serious investigation of the conditions under which confirmational commitments should be changed ought to be a prime target for critical reflection. The necessarians were mistaken in thinking that confirmational commitments are immune to legitimate modification altogether. But their personalist or subjectivist critics went too far in suggesting that we might dispense with confirmational commitments. There is room for serious reflection on conditions under which changes in confirmational commitments may be brought under critical control. Undertaking such reflection need not become embroiled in the anti inductivism that has characterized the work of Popper, Carnap and Jeffrey and narrowed the focus of students of logical and methodological issues pertaining to inquiry. (shrink)

A diagnostic judgment of a teacher can be seen as an inference from manifest observable evidence on a student’s behavior to his or her latent traits. This can be described by a Bayesian model of in-ference: The teacher starts from a set of assumptions on the student (hypotheses), with subjective probabilities for each hypothesis (priors). Subsequently, he or she uses observed evidence (stu-dents’ responses to tasks) and knowledge on conditional probabilities of this evidence (likelihoods) to revise these assumptions. Many systematic (...) deviations from this model (biases, e.g. base-rate neglect, inverse fallacy) are reported in literature on Bayesian reasoning. In a teacher’s situation the information (hypotheses, priors, likelihoods) is usually not explicitly represented numerically (as in most research on Bayesian reasoning), but only by qualitative esti-mations in the mind of the teacher. In our study, we ask to which extent individuals (approximately) apply a rational Bayesian strategy or resort on other biased strategies of processing information for their diagnostic judgments. We explicitly pose this question with respect to non-numerical settings. To investigate this question, we developed a scenario that visually displays all relevant information (hypotheses, priors, likelihoods) in a graphically displayed hypothesis space (called “hypothegon”) – without recurring to numerical representations or mathematical procedures. 42 pre-service teach-ers were asked to judge the plausibility of different misconceptions of six students based on their responses to decimal comparison tasks (e.g. 3.39 > 3.4). Applying a Bayesian classification proce-dure, we identified three updating strategies: A Bayesian update strategy (BUS, processing all probabilities), a combined evidence strategy (CES, ignoring the prior probabilities but including all likelihoods), and a single evidence strategy (SES, only using the likelihood of the most probable hypothesis). In study 1, an instruction on the relevance of using all probabilities (priors and likelihoods) only weakly increased the processing of more information. In study 2, we found strong evidence that a visual explication of the prior-likelihood interaction led to an increase of processing the interaction of all relevant information. These results show that the phenomena found in general research on Bayesian reasoning in numerical settings extend to diagnostic judgments in non-numerical settings. (shrink)

We propose a theory that relates perceived evidence to numerical probability judgment. The most successful prior account of this relation is Support Theory, advanced in Tversky and Koehler. Support Theory, however, implies additive probability estimates for binary partitions. In contrast, superadditivity has been documented in Macchi, Osherson, and Krantz, and both sub- and superadditivity appear in the experiments reported here. Nonadditivity suggests asymmetry in the processing of focal and nonfocal hypotheses, even within binary partitions. We extend Support (...) Theory by revising its basic equation to allow such asymmetry, and compare the two equations’ ability to predict numerical assessments of probability from scaled estimates of evidence for and against a given proposition. Both between- and within-subject experimental designs are employed for this purpose. We find that the revised equation is more accurate than the original Support Theory equation. The implications of asymmetric processing on qualitative assessments of chance are also briefly discussed. (shrink)

We present a model for studying communities of epistemically interacting agents who update their belief states by averaging the belief states of other agents in the community. The agents in our model have a rich belief state, involving multiple independent issues which are interrelated in such a way that they form a theory of the world. Our main goal is to calculate the probability for an agent to end up in an inconsistent belief state due to updating. To that (...) end, an analytical expression is given and evaluated numerically, both exactly and using statistical sampling. It is shown that, under the assumptions of our model, an agent always has a probability of less than 2% of ending up in an inconsistent belief state. Moreover, this probability can be made arbitrarily small by increasing the number of independent issues the agents have to judge or by increasing the group size. A real-world situation to which this model applies is a group of experts participating in a Delphi-study. (shrink)

The phenomenon of probability backflow, previously quantified for a free nonrelativistic particle, is considered for a free particle obeying Dirac's equation. It is shown that probability backflow can occur in the opposite direction to the momentum; that is to say, there exist positive-energy states in which the particle certainly has a positive momentum in a given direction, but for which the component of the probability flux vector in that direction is negative. It is shown that the maximum (...) possible amount of probability that can flow “backwards,” over a given time interval of duration T, depends on the dimensionless parameter ε = (4ℏ/mc2T)1/2, where m is the mass of the particle and c is the speed of light. At ε = 0, the nonrelativistic value of approximately 0.039 for this maximum is recovered. Numerical studies suggest that the maximum decreases monotonically as ε increases from 0, and show that it depends on the size of m, ℏ, and T, unlike the nonrelativistic case. (shrink)

While there is now considerable experimental evidence that, on the one hand, participants assign to the indicative conditional as probability the conditional probability of consequent given antecedent and, on the other, they assign to the indicative conditional the “defective truth-table” in which a conditional with false antecedent is deemed neither true nor false, these findings do not in themselves establish which multi-premise inferences involving conditionals participants endorse. A natural extension of the truth-table semantics pronounces as valid numerous inference (...) patterns that do seem to be part of ordinary usage. However, coupled with something the probability account gives us—namely that when conditional-free ϕ entails conditional-free ψ, “if ϕ then ψ” is a trivial, uninformative truth—we have enough logic to derive the paradoxes of material implication. It thus becomes a matter of some urgency to determine which inference patterns involving indicative conditionals participants do endorse. Only thus will we be able to arrive at a realistic, systematic semantics for the indicative conditional. (shrink)

Thresholds for disease extinction provide essential information for the prevention and control of diseases. In this paper, a stochastic epidemic model, a continuous-time Markov chain, for the transmission dynamics of West Nile virus in birds is developed based on the assumptions of its analogous deterministic model. The branching process is applied to derive the extinction threshold for the stochastic model and conditions for disease extinction or persistence. The probability of disease extinction computed from the branching process is shown to (...) be in good agreement with the probability approximated from numerical simulations. The disease dynamics of both models are compared to ascertain the effect of demographic stochasticity on West Nile virus dynamics. Analytical and numerical results show differences in model predictions and asymptotic dynamics between stochastic and deterministic models that are crucial for the prevention of disease outbreaks. It is found that there is a high probability of disease extinction if the disease emerges from exposed mosquitoes unlike if it emerges from infectious mosquitoes and birds. Finite-time to disease extinction is estimated using sample paths and it is shown that the epidemic duration is shortest if the disease is introduced by exposed mosquitoes. (shrink)

In concrete applications of probability, statistical investigation gives us knowledge of some probabilities, but we generally want to know many others that are not directly revealed by our data. For instance, we may know prob(P/Q) (the probability of P given Q) and prob(P/R), but what we really want is prob(P/Q& R), and we may not have the data required to assess that directly. The probability calculus is of no help here. Given prob(P/Q) and prob(P/R), it is consistent (...) with the probability calculus for prob(P/Q& R) to have any value between 0 and 1. Is there any way to make a reasonable estimate of the value of prob(P/Q& R) 1 A related problem occurs when probability practitioners adopt undefended assumptions of statistical independence simply on the basis of not seeing any connection between two propositions. This is common practice, but its justification has eluded probability theorists, and researchers are typically apologetic about making such assumptions. Is there any way to defend the practice? This paper shows that on a certain conception of probability—nomic probability—there are principles of "probable probabilities" that license inferences of the above sort. These are principles telling us that although certain inferences from probabilities to probabilities are not deductively valid, nevertheless the second-order probability of their yielding correct results is 1. This makes it defeasibly reasonable to make the inferences. Thus I argue that it is defeasibly reasonable to assume statistical independence when we have no information to the contrary. And I show that there is a function Y(r, s, a) such that if prob(P/Q) = r, prob(P/R) = s, andprob(P/U) = a (where U is our background knowledge) then it is defeasibly reasonable to expect that prob(P/Q&R) = Y(r, s, a). Numerous other defeasible inferences are licensed by similar principles of probable probabilities. This has the potential to greatly enhance the usefulness of probabilities in practical application. (shrink)

The first clear and precise statement of the axioms of qualitative probability was given by de Finetti ([1], Section 13). A more detailed treatment, based however on more complex axioms for conditional qualitative probability, was given later by Koopman [5]. De Finetti and Koopman derived a probability measure from a qualitative probability under the assumption that, for any integer n, there are n mutually exclusive, equally probable events. L. J. Savage [6] has shown that this strong (...) assumption is unnecessary. More precisely, he proves that if a qualitative probability is only fine and tight, then there is one and only one probability measure compatible with it. No property equivalent to countable additivity has been used as yet in the development of qualitative probability theory. However, since the concept of countable additivity is of such fundamental importance in measure theory, it is to be expected that an equivalent property would be of interest in qualitative probability theory, and that in particular it would simplify the proof of the existence of compatible probability measures. Such a property is introduced in this paper, under the name of monotone continuity. It is shown that, if a qualitative probability is atomless and monotonely continuous, then there is one and only one probability measure compatible with it, and this probability measure is countably additive. It is also proved that any fine and tight qualitative probability can be extended to a monotonely continuous qualitative probability, and therefore, contrary to what might be expected, there is no loss in generality if we consider only qualitative probabilities which are monotonely continuous. At the present time there is still a controversy over the interpretation which should be given to the word probability in the scientific and technical literature. Although the present writer subscribes to the opinion that this interpretation may be different in different contexts, in this paper we do not enter into this controversy. We simply remark that a qualitative probability, as a numerical one, may be interpreted either as an objective or as a subjective probability, and therefore the following axiomatic theory is compatible with both interpretations of probability. (shrink)

How does deductive logic constrain probability? This question is difficult for subjectivistic approaches, according to which probability is just strength of (prudent) partial belief, for this presumes logical omniscience. This paper proposes that the way in which probability lies always between possibility and necessity can be made precise by exploiting a minor theorem of de Finetti: In any finite set of propositions the expected number of truths is the sum of the probabilities over the set. This is (...) generalized to apply to denumerable languages. It entails that the sum of probabilities can neither exceed nor be exceeded by the cardinalities of all consistent and closed (within the set) subsets. In general any numerical function on sentences is said to be logically coherent if it satisfies this condition. Logical coherence allows the relativization of necessity: A function p on a language is coherent with respect to the concept T of necessity iff there is no set of sentences on which the sum of p exceeds or is exceeded by the cardinality of every T-consistent and T-closed (within the set) subset of the set. Coherence is easily applied as well to sets on which the sum of p does not converge. Probability should also be relativized by necessity: A T-probability assigns one to every T-necessary sentence and is additive over disjunctions of pairwise T-incompatible sentences. Logical T-coherence is then equivalent to T-probability: All and only T-coherent functions are T-probabilities. (shrink)

In this paper we examine the thesis that the probability of the conditional is the conditional probability. Previous work by a number of authors has shown that in standard numerical probability theories, the addition of the thesis leads to triviality. We introduce very weak, comparative conditional probability structures and discuss some extremely simple constraints. We show that even in such a minimal context, if one adds the thesis that the probability of a conditional is (...) the conditional probability, then one trivializes the theory. Another way of stating the result is that the conditional of conditional probability cannot be represented in the object language on pain of trivializing the theory. (shrink)

De Finetti's treatise on the theory of probability begins with the provocative statement PROBABILITY DOES NOT EXIST, meaning that probability does not exist in an objective sense. Rather, probability exists only subjectively within the minds of individuals. De Finetti defined subjective probabilities in terms of the rates at which individuals are willing to bet money on events, even though, in principle, such betting rates could depend on state-dependent marginal utility for money as well as on beliefs. (...) Most later authors, from Savage onward, have attempted to disentangle beliefs from values by introducing hypothetical bets whose payoffs are abstract consequences that are assumed to have state-independent utility. In this paper, I argue that de Finetti was right all along: PROBABILITY, considered as a numerical measure of pure belief uncontaminated by attitudes toward money, does not exist. Rather, what exist are de Finetti's `previsions', or betting rates for money, otherwise known in the literature as `risk neutral probabilities'. But the fact that previsions are not measures of pure belief turns out not to be problematic for statistical inference, decision analysis, or economic modeling. (shrink)

This dissertation is a contribution to formal and computational philosophy. -/- In the first part, we show that by exploiting the parallels between large, yet finite lotteries on the one hand and countably infinite lotteries on the other, we gain insights in the foundations of probability theory as well as in epistemology. Case 1: Infinite lotteries. We discuss how the concept of a fair finite lottery can best be extended to denumerably infinite lotteries. The solution boils down to the (...) introduction of infinitesimal probability values, which can be achieved using non-standard analysis. Our solution can be generalized to uncountable sample spaces, giving rise to a Non-Archimedean Probability (NAP) theory. Case 2: Large but finite lotteries. We propose application of the language of relative analysis (a type of non-standard analysis) to formulate a new model for rational belief, called Stratified Belief. This contextualist model seems well-suited to deal with a concept of beliefs based on probabilities ‘sufficiently close to unity’. -/- The second part presents a case study in social epistemology. We model a group of agents who update their opinions by averaging the opinions of other agents. Our main goal is to calculate the probability for an agent to end up in an inconsistent belief state due to updating. To that end, an analytical expression is given and evaluated numerically, both exactly and using statistical sampling. The probability of ending up in an inconsistent belief state turns out to be always smaller than 2%. (shrink)

Beliefs come in degrees, and we often represent those degrees with numbers. We might say, for example, that we are 90% confident in the truth of some scientific hypothesis, or only 30% confident in the success of some risky endeavour. But what do these numbers mean? What, in other words, is the underlying psychological reality to which the numbers correspond? And what constitutes a meaningful difference between numerically distinct representations of belief? In this Element, we discuss the main approaches to (...) the measurement of belief. These fall into two broad categories—epistemic and decision-theoretic—with divergent foundations in the theory of measurement. Epistemic approaches explain the measurement of belief by appeal to relations between belief states themselves, whereas decision-theoretic approaches appeal to relations between beliefs and desires in the production of choice and preferences. -/- (This book is part of the Cambridge Elements in Decision Theory and Philosophy series.). (shrink)

The propensity interpretation of probability, bred by Popper in 1957(K. R. Popper, in Observation and Interpretation in the Philosophy of Physics,S. Körner, ed. (Butterworth, London, 1957, and Dover, New York, 1962), p. 65; reprinted in Popper Selections,D. W. Miller, ed. (Princeton University Press, Princeton, 1985), p. 199) from pure frequency stock, is the only extant objectivist account that provides any proper understanding of single-case probabilities as well as of probabilities in ensembles and in the long run. In Sec. 1 (...) of this paper I recall salient points of the frequency interpretations of von Mises and of Popper himself, and in Sec. 2 I filter out from Popper's numerous expositions of the propensity interpretation its most interesting and fertile strain. I then go on to assess it. First I defend it, in Sec. 3, against recent criticisms(P. Humphreys, Philos. Rev.94,557 (1985); P. Milne, Erkenntnis25,129 (1986)) to the effect that conditional [or relative] probabilities, unlike absolute probabilities, can only rarely be made sense of as propensities. I then challenge its predominance, in Sec. 4, by outlining a rival theory: an irreproachably objectivist theory of probability, fully applicable to the single case, that interprets physical probabilities asinstantaneous frequencies. (shrink)

The book develops the necessary background in probability theory underlying diverse treatments of stochastic processes and their wide-ranging applications. With this goal in mind, the pace is lively, yet thorough. Basic notions of independence and conditional expectation are introduced relatively early on in the text, while conditional expectation is illustrated in detail in the context of martingales, Markov property and strong Markov property. Weak convergence of probabilities on metric spaces and Brownian motion are two highlights. The historic role of (...) size-biasing is emphasized in the contexts of large deviations and in developments of Tauberian Theory. The authors assume a graduate level of maturity in mathematics, but otherwise the book will be suitable for students with varying levels of background in analysis and measure theory. In particular, theorems from analysis and measure theory used in the main text are provided in comprehensive appendices, along with their proofs, for ease of reference. Rabi Bhattacharya is Professor of Mathematics at the University of Arizona. Edward Waymire is Professor of Mathematics at Oregon State University. Both authors have co-authored numerous books, including the graduate textbook, Stochastic Processes with Applications. Advanced undergrads and graduate students, analysts. (shrink)

In the paper we will employ set theory to study the formal aspects of quantum mechanics without explicitly making use of space-time. It is demonstrated that von Neuman and Zermelo numeral sets, previously efectively used in the explanation of Hardy’s paradox, follow a Heisenberg quantum form. Here monadic union plays the role of time derivative. The logical counterpart of monadic union plays the part of the Hamiltonian in the commutator. The use of numerals and monadic union in the classical (...) class='Hi'>probability resolution of Hardy’s paradox [1] is supported with the present derivation of a commutator for sets. (shrink)

This is an introductory textbook on probability and induction written by one of the world's foremost philosophers of science. The book has been designed to offer maximal accessibility to the widest range of students and assumes no formal training in elementary symbolic logic. It offers a comprehensive course covering all basic definitions of induction and probability, and it considers such topics as decision theory, Bayesianism, frequency ideas, and the philosophical problem of induction. The key features of the book (...) are a lively and vigorous prose style; lucid and systematic organisation and presentation of the ideas; many practical applications; a rich supply of exercises drawing on examples from such fields as psychology, ecology, economics, bioethics, engineering, and political science; numerous brief historical accounts of how fundamental ideas of probability and induction developed; a full bibliography of further reading. Although designed primarily for courses in philosophy, the book could certainly be read and enjoyed by those in the social sciences or medical sciences seeking a reader-friendly account of the basic ideas of probability and induction. (shrink)

De Finetti was a strong proponent of allowing 0 credal probabilities to be assigned to serious possibilities. I have sought to show that (pace Shimony) strict coherence can be obeyed provided that its scope of applicability is restricted to partitions into states generated by finitely many ultimate payoffs. When countable additivity is obeyed, a restricted version of ISC can be applied to partitions generated by countably many ultimate payoffs. Once this is appreciated, perhaps the compelling character of the Shimony argument (...) will be less overwhelming and the attractiveness of de Finetti's more permissive attitude will become more apparent.I want to push the permissive tendency in de Finetti still further. It seems doubtful that RUIWC should be required as de Finetti apparently suggested. It is also excessively dogmatic and restrictive to require that the credal states of ideally situated rational agents be numerically definite (Levi 1974, 1980). And de Finetti's rejection of objectivism in statistics overreached itself when he dismissed objective probabilities as meaningless metaphysical artefacts (Levi 1986). In this respect, the philosophically most important lessons de Finetti has to teach us are to be found not in his celebrated representation theorem but in his discussions of the relations between 0-probability and possibility, conditional probability and countable additivity. Perhaps, the technical issues involved are remote and pedantic. But the attitude de Finetti sought to inculcate is of profound importance. (shrink)

After generalizing the Archimedean property of real numbers in such a way as to make it adaptable to non-numeric structures, we demonstrate that the real numbers cannot be used to accurately measure non-Archimedean structures. We argue that, since an agent with Artificial General Intelligence (AGI) should have no problem engaging in tasks that inherently involve non-Archimedean rewards, and since traditional reinforcement learning rewards are real numbers, therefore traditional reinforcement learning probably will not lead to AGI. We indicate two possible ways (...) traditional reinforcement learning could be altered to remove this roadblock. (shrink)

This paper contributes to the mathematical foundations of the model for utility theory developed by Richard Jeffrey in The Logic of Decision [5]. In it I discuss the relationship of Jeffrey's to classical models, state and interpret an existence theorem for numerical utilities and subjective probabilities and restate a theorem on their uniqueness.

Meehl's statement "in most psychological research, Improved power of a statistical design leads to a prior probability approaching 1/2 of finding a significant difference in the theoretically predicted direction" (philosophy of science, Volume 34, Pages 103-115), Is without foundation. The computation of prior probabilities of accepting or rejecting a hypothesis presupposes knowledge of the prior probabilities that this hypothesis or any of its conceivable alternatives are true. As we do not have such knowledge, We cannot give any numerical (...) values of prior probabilities of accepting or rejecting hypotheses in any statistical test procedure. Only topological statements are possible, As for example: when the region of acceptance of a hypothesis narrows, The prior probability that it will be accepted remains constant or increases. (shrink)

In an article published in this journal in 1996, I surveyed number stylization in monetary amounts recorded in Roman-era literature up to the Severan period. I argued that certain leading digits such as 1, 3 and 4 were heavily over-represented in the evidence. For the limited samples I used at the time these findings are not in need of revision. However, as I show here, a more inclusive approach to the material produces a substantially different picture. The most significant shortcoming (...) of my study was my failure to take account of the probable distribution of leading digits in a random sample, which may serve as a benchmark for assessing the nature and extent of number preference. While I noted that lower leading digits were inherently more likely to occur than higher ones, I schematically related observed frequencies to an even distribution of leading digits. This benchmarking strategy is invalidated by a widely observed phenomenon known as Benford's Law, according to which leading digits frequently conform to a predictable pattern that greatly favours lower over higher numbers. This is true in particular if observations are spread across several orders of magnitude. Ancient monetary valuations satisfy this condition since recorded amounts range from single digits to hundreds of millions. Yet, to the best of my knowledge, Benford's Law has never been applied to the study of these data. (shrink)

Most handbooks on statistics and the theory of probability leave the reader in a mysterious tangle of mathematical rules for computing apparently arbitrarily chosen numerical functions. At first sight, then, a treatise on the Logical Foundations of Probability raises hopes that it will be a guide to clarity in these matters. These hopes are strengthened if the reader remembers that the author, Professor Rudolph Carnap of the University of Chicago, is noted for his thesis that philosophy is (...) the study of the logic of science. On the other hand, a first glance into this book may discourage a reader who, though familiar with statistics, is not familiar with modern logic and its notation. For this reason particularly I shall try to give an account of this book that will enable the interested student to form some opinion of its usefulness to him. (shrink)

How are we to understand the use of probability in Popper’s corroboration function? Popper says logically, but this raises a problem that becomes apparent when his views on logical probability are compared with those of Keynes. Specifically, Popper does not make it clear how we could have access to, or even calculate, probability values in a logical sense. For first, he would likely want to deny the Keynesian distinction between primary and secondary propositions, and the underlying notion (...) of knowledge-by-acquaintance with Neo-Platonic entities. Second, he would presumably reject not only the notion of non-numerical probabilities, but also the claim that the principle of indifference is aught other than a heuristic, given paradoxes such as Bertrand’s. An attempt might be made to solve this problem by appeal to semantic or possible world analyses over the relative truth-values of statements, but this seems to fail due to concerns relating to infinity: if the set of possible worlds in which p is true is infinite, and the set of possible worlds in which q is true is infinite, then no numerical value for P can be reasonably determined by a comparison between those worlds. As such, an all-too-familiar sort of criticism of Popper’s view of science seems to loom large: if the corroboration function only makes sense when the probabilities employed therein are subjective, then what counts as impressive evidence for a theory might seem to be a matter of convention, or even whim. However, we now have a new interpretation of probability at our disposal: the intersubjective interpretation, recently championed by Gillies, according to which probabilities can lie on a spectrum between the aleatory and the epistemic. Might we employ this to preserve the corroboration function, and deliver ourselves from Bayesianism, without succumbing to radical subjectivism? (shrink)

Organic evolution, or change, among the diatoms has proceeded with considerable regularity. The origins, the extinctions, and the increases in numbers of species and genera, on the whole, have submitted to law and order, as rules-within-limits . The changes of evolution have followed from two sorts of phenomena — 1) the origin and extinction of shortlived or unstable species, in a proportion which has been more or less constant, but different in the two groups of diatoms, Centricae and Pennatae; these (...) short-lived species died out in the subperiod of their origin even under favourable enough environment or surrounding conditions, because of the innate instability of these particular species: and 2) the origin of new species which demonstrated their innate capacity for permanence by remaining in the living condition from their origins mostly up to the present time. The continued or continual additions of new and long-living species, in proportion to the number available as possible and parental species, has given the geometrical progressions.Consequently evolution in the diatoms has been monopodial, or one-stemmed, and not sympodial or not with many substitutions of one species after another in successions. The two kinds of species-durations are well-known in other classes of plants and animals. Exactly the same processes of additions, subtractions, and multiplications, particularly as found in the centric diatoms, are very probable in these classes of plants and animals which have given the same answer or arithmetical result for the whole of their previous histories, in the form of the frequency distribution of the present sizes of their genera.The rules-within-limits of this basic evolution are described, defined, and discussed in their relations to various theories of evolution which perhaps only concern the working of factors of superimposed modifications that reduce the results of the pattern or plan of basic evolution.Die phylogenetische Entwicklung wurde im Bereich der Kieselalgen von bestimmten Gesetzmässigkeiten beherrscht. Die Entstehung neuer Arten und Gattungen, ihr Wiederverschwinden und die Zunahme des Formenreichtums, resultierend aus der Zahl der neuentstandenen, vermindert um die der wieder verschwindenen Arten und Gattungen und vollzog sich nach Regeln , die durch folgende Phänomene gekennzeichnet sind: Zwischen der Zahl der neuentstehenden und der Zahl der in der gleichen geologischen Subperiode aus inneren Gründen wieder aussterbenden Arten besteht eine mehr oder wenig feste Beziehung. Diese ist für die Centricae und Pennatae verschieden. Ein bestimmter Anteil der neuentstandenen Arten und Gattungen erwies sich aus inneren Gründen als „ausdauernd” und blieb bis auf den heutigen Tag erhalten. Die Zunahme der Arten- Zahl durch das Hinzukommen langlebiger Formen war stetig und vollzog sich nach Massgabe geometrischer Progressionen.Diese Tatsachen führen zu dem Schluss, dass die phylogenetische Entwicklung der Kieselalgen nach monopodialem, und nicht nach sympodialem Muster vorsichging. Auch in andern Pflanzengruppen und im Tierreich durften die gleichen Gesetzmässigkeiten herrschend sein. Am klarsten gelangen sie bei den Centricae zum, Ausdruck und werden vom Autor als das Fazit von Additions-, Subtraktions-, und Multiplikationsprozessen aufgefasst. Die heutige Situation bezüglich Häufigkeit der Grössen der Gattungen, in Zahl der Arten, ist das Endergebnis der summativen Wirkung dieser Einzelprozesse.Diese als ‚rules-within-limits’ bezeichneten Gesetzmässigkeiten werden im einzelnen beschrieben, erklärt und zusammenfassend dargestellt. Zu andern Evolutionstheorien in Beziehung gebracht, werden sie schliesslich für Erörterung des Problems benutzt, inwieweit noch andere evolutionsgeschichtliche Prozesse als übergeordnete Faktoren in den vom Verfasser dargestellten Grundplan des Evolutionsgeschehens eingreifen können.L'évolution organique ou le changement parmi les Diatomées s'est effectué avec une régularité considérable. Les origines et les extinctions, et les accroissements des nombres des espèces et des genres, se sont soumis en tout aux lois et aux ordres, commes des régularités à l'intérieur de légères déviations. Le changement de l'évolution fut la conséquence de deux sortes de phénomène: l'origine et l'extinction des espèces éphémères dans une proportion plus ou moins déterminée mais différente pour les deux classes des Diatomées, Centricae et Pennatae; ces espèces éphémères moururent dans la subpériode de leur origines malgré le caractère assez favorable des circonstances environnantes, à cause de l'évanescence inhérente aux espèces particulières, et l'origine des espèces nouvelles qui démontrèrent leur qualité innée de permanence tout en continuant de vivre depuis leurs origines, pour la plupart, jusqu'à présent. Les additions continuelles d'espèces nouvelles et permanentes, en nombres proportionnés aux nombres disponibles comme espèces parentes et possibles, donnèrent des accroissements par progressions géométriques.Par conséquent, l'évolution parmi les Diatomées fut monopodiale et non pas sympodiale. Les deux sortes d'espèces-durées sont bien connues parmi beaucoup d'autres classes de plantes et d'animaux. Les mêmes procédés d'additions, de soustractions et de multiplications, particulièrement tels qu'on les trouve dans les Centricae, sont très probables pour ces classes de plantes et d'animaux qui ont donné un résultat le plus semblable pour la somme totale de leur histoire précédente, sous la forme de la répartition des fréquences de leurs grandeurs générique actuelles.Les régularités à l'intérieur de légères déviations de cette évolution fondamentale sont détaillées, définies et discutées dans leurs relations aux diverses théories touchant les autres méthodes de l'évolution qui jouent le rôle de facteurs modifiants superposés au dessin général ou au dessein de l'évolution fondamentale. (shrink)

The purpose of this paper is to show that if one adopts conditional probabilities as the primitive concept of probability, one must deal with the fact that even in very ordinary circumstances at least some probability values may be imprecise, and that some probability questions may fail to have numerically precise answers.

This eighth book of the author on gambling math presents in accessible terms the cold mathematics behind the sparkling slot machines, either physical or virtual. It contains all the mathematical facts grounding the configuration, functionality, outcome, and profits of the slot games. Therefore, it is not a so-called how-to-win book, but a complete, rigorous mathematical guide for the slot player and also for game producers, being unique in this respect. As it is primarily addressed to the slot player, its goal (...) is to present practical applications of the mathematical models of slot games, in order to provide numerical results that a player can use as criteria for gaming decisions or just as information for any slot game and any predicted winning event. These results are focused on probability and expected value, these being the most important parameters for decisional criteria in slots. The book is packed with plenty of figures, tables, and formulas. The content is organized so that readers can skip the theoretical parts and go picking the practical results (numerical, in tables of values where possible, or ready-to-compute formulas) for the desired situation. The practical results are gathered in the last chapter, titled "Practical Applications and Numerical Results," the largest part of the book, for the most popular categories of slot machines, namely with 3, 5, 9, and 16 reels. Any other category of slot games is covered in the theoretical part of the book, where the general formulas apply not only to existing slot games, but also to possible future slot games of any design and configuration. The author does not just throw the slot mathematics to the audience and run away, but offers an ultimate practical contribution with the chapter "How to estimate the number of stops and the symbol distribution on a reel", a surprise for both players and producers, where one can see that mathematics provides players with some statistical methods as well as methods based on physical measurements for retrieving these missing data. Having these data along with the mathematical results of this book, anyone can generate the PAR sheet of any slot machine. In the last decade, mathematics has been taken more and more seriously into account in gaming, as being the essence that governs the games of chance and the only rigorous tool providing information on optimal play, where possible. For the popular game of slots, mathematics already fulfilled its duty by providing all the data that it can provide and that cannot be found on the display of the slot machines - it is all here in this book. (shrink)

ABSTRACTThe new paradigm in the psychology of reasoning redirects the investigation of deduction conceptually and methodologically because the premises and the conclusion of the inferences are assumed to be uncertain. A probabilistic counterpart of the concept of logical validity and a method to assess whether individuals comply with it must be defined. Conceptually, we used de Finetti's coherence as a normative framework to assess individuals' performance. Methodologically, we presented inference schemas whose premises had various levels of probability that contained (...) non-numerical expressions and, as a control, sure levels. Depending on the inference schemas, from 60% to 80% of the participants produced coherent conclusions when the premises were uncertain. The data also show that except for schemas involving conjunction, performance was consistently lower with certain than uncertain premises, the rate of conjunction fallacy was consistently low (not exceeding 20%,.. (shrink)

Probabilistic reasoning is heavily investigated in decision research. Violations of probability theory have been demonstrated numerously, for instance, the tendency to overestimate the joint probab...