Psychology of Intelligence Analysis (1999)
cia.gov
cia.gov
If the time frame were extended to two years, would the probability be 120%?
The correct probability is:
1 - (1-.05)^12 ~= 0.46
Hard to credit a text about cognitive biases that makes elementary mistakes in probability.
Your math correctly assess the odds of a one time event, as one minus the odds of the event never occurring. But if 5%/month is an expected frequency of a recurring event, then after 24 months we'd expect 1.2 occurrences. Yeah?
edit: Their language is awfully sloppy, though. It's not a 60% chance in the next 12 months, it's .6 expected occurrences.
Whether or not it is reasonable to compound such a messy probability is a whole other question, but the fact the training material could not do so correctly (on apparently its own terms) does not speak with great confidence for the practitioners trained upon it.
No it isn't. If I have some information about events that will occur over the next few months, my estimations will be different based on that knowledge, eg I know there is going to be an election in some neighboring country that will involve violence, so I think that the probability of being unable to ship overland through that country is low now, but high in a few months.
"5 percent per month for 12 months"
I don't know how to reconcile this with your interpretation.
The Neural Basis of Decision-Making During Sensemaking: Implications for Human-System Interaction
https://www.researchgate.net/publication/278679336_The_Neura...
I think it's generally lacking in mathematical rigor and doesn't really do that good of a job building models. It simply gives the user some entry level tools to make their analysis more structured.
Any other resources like this that I might find interesting and impact the way I go about analytical work?
"To Mom & Dad, who showed us how to use the power tools to take apart other power tools."
I do share his fascination of Bayes' and believe that it is one of the most powerful theorems out there. It keeps popping up in applications everywhere (ML, crypto, intelligence, pharma dev etc etc) since published about 200 years ago. Taught to thousands of undergrads every year in every country, I sometimes get the impression its simplicity does not successfully convey the true real-world capacity.
To think it was not so long ago assumed inferior to sampling and frequency statistics.. :)