New Books in Economics

Allen B. Downey, "Probably Overthinking It: How to Use Data to Answer Questions, Avoid Statistical Traps, and Make Better Decisions" (U Chicago Press, 2023)

Oct 10, 2025
Allen B. Downey, a principal data scientist and author, delves into the importance of statistical thinking and its real-world applications. He uncovers the friendship paradox, highlighting how we often perceive ourselves as having fewer friends than our peers. Downey addresses sampling bias with concerning examples, such as inflated recidivism rates. He also critiques the 10,000-hour rule for expertise and explains how misinterpreting data has led to misleading policies. Overall, he emphasizes the need for better data literacy in society.
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INSIGHT

Data Can Clarify Or Distort Reality

  • Data can both clarify the world and mislead if we ignore selection effects and biases.
  • Allen Downey argues that statistical thinking helps reveal real causes and prevent distortions.
INSIGHT

Average Person Is Rare In Many Dimensions

  • In high dimensions, most individuals will deviate from the mean on some measures, so a single "average" person is rare.
  • Downey shows with 10 then 96 measurements that everyone is "weird" in some ways.
INSIGHT

Selection Bias Creates The Friendship Paradox

  • Sampling method changes observed distributions: selecting friends oversamples popular people and biases averages.
  • This "inspection paradox" explains why most people have fewer friends than their friends do.
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