Thinking - Fast and Slow
Daniel Kahneman
Contributed by Larisa Brooke
Chapter 21
Summary

The chapter implies that intuitions of a trained professional yield more accurate results than those based on statistics. Notwithstanding, methods are more precise and precise although they require verified data and are tedious in coming up with and calculating the expected outcome. Professionals have been found guilty of criticizing algorithms that seem to compromise what their intuitions present to them. The disciplined statistical analysis is emphasized on rather than first impression intuitions relied upon mostly in interviews. The chapter is all about doing it yourself, implying that you should establish what you need to make an informed decision.

Analysis

Formulas were developed not necessarily to ease the work done but to produce as accurate as possible results. Human judgment should be and replaced with methods in deriving the course of action to be taken. The human experience is subjective and is affected by intuitions. Reliance on it understanding eases the analysis required since System 1 work with the first impressions. A disciplined combination of the two systems should yield more reliable judgments since each system will cover up the shortfalls of the other in the occasion they arise. It is also important to note that statistical analysis should go hand in hand with the combination of the two systems to act as a referencing tool.

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