Blunder, why smart people make bad decisions

Not much of a book. It covers several topics by using historical examples in order to make a case that people suffer from defects in processing information. While that’s true, any statistics book generally discusses how people arrive at fallacies that affect their judgment. It’s common to overweight the recent past, or see linkages where no scientific relationships exist, for example gambler’s fallacy. The reason smart people make mistakes is that they don’t have a system of implementing a trial, the only way to clarify is to experiment on a small scale, otherwise we’re in the common situation of life of making decisions on unknowns, too little information, or unreliable information taken as an authentic knowledge-base. J.P. Getty discussed decision making briefly in his book, How to be rich (I posted some commentary of his analysis). He stated, “Is this fact or opinion?”

But you don’t have to take my advice…

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