The law of averages is a principle that supposes most future events are likely to balance any past deviation from a presumed average.
Take, for example, flipping a coin. Should you get 5 "Heads" in a row, you'll assume the next one must be "Tails" despite the fact that each flip has a 50/50 chance of landing on either.
Even from this example, you can tell it's a flawed law. While there are reasonable mathematical uses of this law, in everyday life, this "law" mostly represents wishful thinking.
It's also one of the most common fallacies seen in gamblers and traders.
Perhaps you heard the story about how the U.S. Air Force discovered the 'flaw' of averages by creating cockpits based on very complex mathematics surrounding the average height, width, arm length, etc. of over 4,000 pilots. Despite engineering the cockpit to precise specifications, pilots crashed their planes on a too regular basis.
The reason? With the benefit of hindsight, they learned that very few of those 4,000 pilots were actually "average". Ultimately, the Air Force re-engineered the cockpit and fixed the problem.
It's a good reminder that 'facts' can lie, and assumptions and interpretations are dangerous. It's why I prefer taking decisive action on something known, rather than taking tentative actions about something guessed.
via ReasonTV
Make News Beautiful Again
My mother watches the news religiously. To her credit, she watches a variety of sources and creates her own takeaways based on them. Regardless, there's a common theme in all the sources she watched – they focus on fear or shock-inducing stories with a negative bias. As you might guess, I hear it when I talk with her.
While I value being informed, I also value things that nourish or make you stronger (as opposed to things that make you weak or less hopeful).
Negativity Sells.
Sure, news sources throw in the occasional feel-good story as a pattern interrupt ... but their focus skews negative. History shows that stories about improvement or the things that work simply don't grab eyeballs, attention, or ratings consistently.
The reality is that negativity sells. If everything were great all the time, people wouldn't need to buy as many products, they wouldn't need to watch the news, and this cycle wouldn't continue.
It's worth acknowledging and understanding the perils our society is facing, but it's also worth focusing on the ways humanity is expanding and improving.
As a brief respite from the unending doom and gloom of mainstream media, Information Is Beautiful has a section of their site focused on "Beautiful News".
It's a collection of simple data visualizations for positive trends, it's updated daily, and can be sorted by topic.
Beautiful News via Information Is Beautiful
If you're looking for more "good news", here's a list of 10 sources focusing on good news.
Posted at 06:04 PM in Business, Current Affairs, Healthy Lifestyle, Ideas, Market Commentary, Personal Development, Science, Television, Trading Tools, Web/Tech | Permalink | Comments (0)
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