It's a Noisy World Out There • Linda Rising • GOTO 2023

Learn how to mitigate the impact of noise and bias in decision-making processes, and discover strategies for making better judgments in noisy and uncertain environments.

Key takeaways
  • Noise is a significant problem in decision-making processes, as it leads to biased and unpredictable results.
  • The human brain is prone to noise, and it’s not possible to completely eliminate it, but awareness can help mitigate its effects.
  • Biases are predictable and consistent, whereas noise is unpredictable and random.
  • Simple models can outperform complex ones in noisy environments, as they are less prone to biases.
  • Systems like genetic algorithms, for example, can take advantage of objective measures of performance to converge towards optimal solutions.
  • Noise can be reduced through the use of objective measures of performance, such as real-world data, and by avoiding unreliable or subjective information.
  • In a hospital setting, doctors’ diagnoses may be influenced by biases, such as the optimism bias, which can lead to overdiagnosis and unnecessary treatments.
  • It’s important to recognize that preferences and values are subjective and can be biased.
  • Noise can also be reduced through the use of statistical models, such as models that incorporate public data, rather than relying solely on individual opinions.
  • In general, we tend to overestimate the quality of our decision-making processes and underestimate the potential for biases and noise.
  • Becoming aware of our own biases and noise can help us make better decisions.
  • Simple models can be just as effective as complex ones in noisy environments, and may even be more effective.
  • The book “Noise” by Kahneman recommends a more holistic approach to decision-making, which takes into account both internal and external factors.
  • Noise can be reduced by using objective measures of performance and by avoiding unreliable or subjective information.
  • Post-mortems, or retrospective analyses, can be a useful tool in identifying patterns and biases in decision-making processes.
  • Simple models can be used to estimate the probability of certain events, and may be more effective in noisy environments.
  • Noise can be reduced through the use of statistical models and objective measures of performance.
  • Biases can be reduced through the use of objective measures of performance and by avoiding unreliable or subjective information.
  • In general, it’s important to recognize the role of noise and biases in decision-making processes, and to design systems that take these factors into account.