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Gerd Gigerenzer on Gut Feelings

EconTalk

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Data Interpretation and Predictive Models

This chapter explores the nuances of data interpretation, focusing on the difference between correlation and causation in predictive modeling. It critiques the complexity of predictive algorithms and promotes the effectiveness of simpler heuristics in uncertain scenarios, illustrated through examples like Google Flu Trends. The chapter also emphasizes the importance of personal experiences and cultural insights in understanding nuanced decisions, such as the impact of parenthood on happiness.

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