What do you mean by “risk literacy” and why do you think it is so important for people to have it?
I am a statistician and I know that people find probability and statistics quite difficult to understand, and not intuitive. And after years and years of careful research I have finally concluded that it is because probability and statistics really are difficult to understand and unintuitive. I think knowing something about how chance works in the world is a basic skill that people should have, along with reading, writing and basic numeracy. Otherwise you can be subject to all sorts of manipulations, and that will come out in some of my book choices.
Let’s have a look. First up is The Drunkard’s Walk by Leonard Mlodinow, which looks at how the mathematical laws of randomness affect our lives.
This is a general introduction to the history of probability and the way it comes into everyday life. It intersperses the historical development with modern applications, and looks at finance, sport, gambling, lotteries and coincidences.
It starts off with quotes from Cicero feeling that people were being misled by thinking that the gods influenced the throw of a die. Then it carries on through the early development of probability in the 16th century with [Italian Renaissance mathematician Gerolamo] Cardano. He threw two dice and looked at the distribution of the sum of the two faces. There was an incredibly popular game called Hazard where you threw two dice and betted on what the total would be. Amazingly, people had been gambling for centuries and had never realised you could do maths on gambling. Probability – which used to be known by the wonderful term “the doctrine of chances” – grew out of this.
What other examples does he give?
The book illustrates various issues in ordinary life. For example it looks at the gamblers fallacy, where if you are betting on something like roulette and red has come up more than four times in a row, the fallacy is that black must be due to come up. That isn’t true, as long as the wheel is fair. You get that in lotteries as well, where if numbers haven’t come up for a while people feel that they must be due – which isn’t the case as there is no memory in the system.
He also covers coincidences, for example the fact that people do win freak lottery results, such as winning twice in a short period. Actually, these things are not unexpected if you take into account the number of opportunities for odd coincidences like this to happen. So he explores the different ways that probability can do strange things, which he illustrates very nicely with a whole lot of historical characters.
As a final example he talks about Francis Galton, a rather strange but brilliant man who came up with the idea of “regression to the mean”. This is the fact that if you pick things when they are on a high for some reason, just by chance they are likely to come down. He uses the example of the supposed jinx of Sports Illustrated, which is the idea that after anyone appears on the cover of Sports Illustrated magazine, inevitably their career seems to suffer a terrible blow. He points out that this is really regression to the mean. The fact that you are on the cover means that you have had a run of good luck, but luck doesn’t last and eventually things average out.
Your next book, Stephen Senn’s Dicing with Death, has been described by reviewers as very entertaining and funny – which is not something you would normally expect from a book on statistics.
I know Stephen, and he is full of very entertaining jokes and rude remarks about people. This book is somewhat similar to The Drunkard’s Walk in that it covers the history of probability. But since Stephen’s background is in medical statistics, he looks at clinical trials and other medical studies.
He is particularly interested in different ideas on statistical inference. It is not generally known that within the statistical world, for decades if not centuries, there have been arguments about different ways of thinking about inferences. This is the way that you draw conclusions from data about the underlying states of the world. Some of these arguments involve quite deep philosophical issues. For example, “What is probability?” Stephen Senn covers the different schools of statistical inference, including the so-called Bayesian inference, of which I am an enthusiast, as well as that based on [Ronald] Fisher, [Jerzy] Neyman and [Karl] Pearson.
Stephen Senn tends to follow the Fisherian approach, and he can be very rude about the Bayesian school. He accuses them of having meetings where they sing Bayesian songs which he says are of “mind-numbing puerility”. As someone who has sung some of these songs at meetings, I think he might have a point.
David Spiegelhalter is a distinguished British statistician. In 2007 he was elected Winton Professor of the Public Understanding of Risk in the Statistical Laboratory at Cambridge University. He divides his work between the Statistical Laboratory and the Medical Research Council Biostatistics Unit. Spiegelhalter is an ISI highly cited researcher