Rebane's Ruminations
January 2013
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George Rebane

The importance and magnitude of EVERY social problem lies in its numbers.  If you don’t understand the numbers and how they relate, all you can do is emote about the problem.


BillGatesRR
has argued from the start that applying the tools of the systems sciences is critical to the solutions of all social problems (see end notes below).  For obvious reasons, also presented and discussed in these pages, the Left has been the major opponent of bringing analytics and numeracy to bear on social issues – this for the simple reason that it deflates their emotion based fuzzy rhetoric which they use to promote their collectivism.

Well, now we have no less than Bill Gates coming out in a major piece promoting quantitative “measurement” for solving worldwide problems ranging from high infant mortality to the classroom evaluation of teachers.  His proposals contain absolutely no new ideas, but what is important is that the world’s most famous billionaire and philanthropist is going public with ‘new’ notions the youngest of which is about fifty years old.

In his ‘My Plan to Fix The World’s Biggest Problems’ there is no plan presented, save the exhortation to start measuring and recording things to do with the problem that you’re trying to solve.

For reasons unknown, Gates does not make clear the difference between a utility function or figure of merit (FOM), that would serve as an objective or goal or to define ‘good’, and the measured attributes that go into the FOM.  Perhaps it’s because the piece was written for broad audiences who would be confused by such nuances.  However, regular RR readers should not suffer similarly.

A clarifying example might serve here.  Consider buying a car from the many models offered – which one to buy?  To keep it simple, the only attributes you consider important are its top speed and cost.  Somehow you have to trade off these contentious attributes since the faster cars cost more.  The tradeoff is performed in your formulation of the cars’ FOM which combines the numerical values of each car’s speed and cost.  Then you can collect the numbers for the cars, calculate their FOM values, and pick the one that for you yields the maximum utility.  (For you phormulaphiles, a typical FOM formulation here might be FOM = weight*(mph top speed) + (1 – weight)*(K$ cost), where weight is a number between 0 and 1 that reflects your speed/cost tradeoff.)

And here’s rub and the benefit – the adoption and expression of every FOM or utility function is completely subjective for whatever problem you’re solving.  The FOM captures your values, judgments, experience, likes/dislikes, and even constraints on what can be done.  And such explicit FOMs can do the same for a government, community, or a corporation (business has been using them for decades).  Gates is finally saying to America that we have to approach problems with systems thinking if we want to make progress.  Continuing with the Left’s approach of “issues activism” based on selected anecdotes and fuzzy emotionalism, while rejecting data and a common understanding of ‘good’, will not accomplish much, and has gotten us to where we are now.  (That last italicized bit I added because Bill Gates couldn’t.)

The belated call for such quantitative approaches is encouraging, even though it might turn out to be just more relieving yourself over the windward gunnel.  I hope not.  Read the article.

End Notes:  For a brief summary of RR postings related to reasoning and systems thinking, I have culled the following short list.  More can be found filed in RR’s ‘Science’ and ‘Science Snippets’ categories.

‘Economic Development in Nevada County’
‘Systems Science Rules (almost)!’
‘Healthcare Utility Metric with Scriptural Underpinnings’
‘A Thoughtful View of Climate Change’
‘Why Reason Fails’

Posted in , , , ,

167 responses to “Numbers get a (confused) boost”

  1. Ryan Mount Avatar

    ‘economists and analysts’ whose predictions are always sought by the know-nothing lamestream
    We only hear from them when things are bad. Why is that, you think?

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  2. George Rebane Avatar

    RyanM 1140am – Actually, we hear their predictions mentioned regularly in the context of the monthly financial reporting from various governmental agencies and private sector financial houses. (My usual sources are Fox News, Fox Business, CNBC, and NPR.)
    The enduring nature of their credibility continues to amaze me. A moment’s thought reveals that if they ever did get it right enough times, one could make lucrative market bets on their predictions (which would immediately extract all available information, and again reduce their mutterings into the noise it is). And since such lucrative bets are not available, I keep wondering how they maintain their credibility, why does anyone care what they say (save Comedy Central or SNL).

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  3. Gregory Avatar

    Economics is called ‘the dismal science’ for good reason.
    George, I think you’re overstating the actual error by 1,098.9%, but I appreciate the sentiment.
    Ryan, 9:49, you seem to have a dark spot in your heart for Boomers… where does this come from? The Boomer professors at Humboldt State? The problem isn’t Boomers, it’s everyone that is ignorant of even 8th grade Algebra 1 including many public school teachers who buy books to help them pass the test of 8th grade material required to teach in California.
    Boomers got screwed starting in the ’80’s when the Congressional panderers to the greedy geezers started the serious climb of SS and Medicare taxes from Boomers, bumping up the benefits to the already retired and loaning themselves the difference to cover their deficits, pretending to pay interest, keeping the IOUs in the imaginary lockbox. Boomers didn’t invent the system, and enough politicians have been lying about it, starting with FDR, that it has been impossible to reform effectively.
    Alan Simpson was a rare bird but even he waited until after retirement to really try to stir things up.

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  4. George Rebane Avatar

    Gregory 203pm – my sentiment is purposefully understated to keep the adjectives civil. However, my reporting the percent error of the predicted vs achieved growth percentages is spot on. % error = abs(predicted/estimated – correct)/correct)100 = abs((1.0 – (-0.1))/(-0.1))100 = 11*100 = 1,100%
    People are often confused when the percent error of percentages needs to be computed. For a more complete tutorial see Taylor’s ‘An Introduction to Error Analysis’ or any equivalent text.

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  5. Ryan Mount Avatar

    where does this come from?
    Undoubtedly Oedipal. Low self-esteem probably contributes in there as well.
    Boomers didn’t invent the system, and enough politicians have been lying about it, starting with FDR, that it has been impossible to reform effectively.
    OK. Again I’m too quick to judge. Sorta. They may not have invented this entitlement system, but they sure stepped on the gas. Not that GenXers and their mouthy Millennial, cloven-hoove iChildren have done much about it. We did bring you the banking crisis, those of us who did pay attention in Algebra.

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  6. Gregory Avatar

    George, I’m well steeped in the science of determining error, we just disagree on the application of it that you made.
    Ryan, no, Boomers didn’t “step on the gas”. The system was on autopilot and the only thing all the different generation’s politicians could agree on was to kick the can down the road. Yours are doing the same thing at the moment.

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  7. Ryan Mount Avatar

    The system was on autopilot
    Apologia, dude. At any moment they could have grabbed the controls. And they did/tried. See CA Prop 13 followed by Prop 98 as salient examples of Boomers failed idealism. Boomers love a good fight.
    Me? I just want a reasonable, manageable peace. I wants this god-damn government spending insanity to stop. Now. I also want individual liberty and responsibility restored to replace the victimhood that infects our gangrene, disgustingly privileged culture.
    GenXers love nothing; but we learned from our “me” Boomer parents that there is no center, no “family” and no stability. There’s just impulse. So our present culture bears that fruit. But as the product of a 60-75% divorce rate, we’ve learned to survive. We’re the generation, for better or worse, who invented Microsoft Project. We also invented the modern private contractor.
    I love gin, Dirty Harry movies, William Blake, James Madison and hard work. But I do I hate my generation, for the record as many still walk around carrying red Solo cups full of someone else’s keg beer. I tend to think there’s joy (or virtue) in that hate. We could use a good dose of hatred (Boomers immediately recoil at such an assertion) providing we don’t let it get out of hand, which seems unlikely given the tenor and rhetorical (lack of) skill that most post-moderns seem to possess.
    But Greg, on a person note, I appreciate your sober criticism.

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  8. JesusBetterman Avatar

    I finally found the source of a lot of a certain poster’s comments: http://www.atrixnet.com/bs-generator.html

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  9. George Rebane Avatar

    re JesusB’s 1209am – in 1967 during an intense proposal writing phase at a large aerospace company where I was a young engineer, I wrote a Fortran program that pumped out any number of such phrases to satisfy the requirements specified in RFPs. The fun part was that we even snuck a few of them into our proposals with no eyebrows raised.
    The astute reader will recall that entire papers have been written, peer reviewed, and accepted in the liberal arts and ‘soft sciences’ that have consisted of 100% bullshit.
    Punchline – you have to know something to be able to tell the difference.

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  10. Gregory Avatar

    “Punchline – you have to know something to be able to tell the difference.”
    George, ain’t that the truth.
    “We’re the generation, for better or worse, who invented Microsoft Project.”
    Ryan, sorry dude, that guy was born in 1951, and it wasn’t the first software-based project management tool out there.

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  11. George Rebane Avatar

    MichaelA 1013am – Wow! all those charts and graphs sure nail down again why the world’s poor and oppressed do all they can to get into the US, instead of all those other countries that are oh so much better than that nasty old unenlightened, warmongering America. It’s good to be reminded of why we need to be taxed and regulated more. Thanks to that paragon of balanced journalism, we feel better already.

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  12. Michael Anderson Avatar
    Michael Anderson

    So those numbers are false?

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  13. George Rebane Avatar

    MichaelA 607pm – Posit that the numbers are correct. We are still left with your implied conclusion being existentially in error. And, after all, was it not that implied conclusion that was your point?

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  14. Michael Anderson Avatar
    Michael Anderson

    George,
    We’re talking about numbers, the point of your post.
    My first comment said “Interesting numbers,” and then the link.
    You responded, which I very much appreciate, so now we have a discussion going. So, if you would now like to know about my implied conclusion, it is that our poverty levels are nothing to be proud of, which has nothing to do with why immigrants might want to come here.
    In fact, the numbers might even make the case that because of our high rate of poverty, immigration to the US is highly sought after due to the consequent abundance on the other side of the curve.
    I’m not making that case yet, but it is certainly a possibility.
    I guess what I am really getting at is that the Republican Party still has a marketing problem. It focuses on the abundance and misses the boat on the poverty.
    The poverty index is currently winning national elections, and with the demographic trends I don’t see that changing any time soon. As a registered Republican, it seems like my party is like a suicidal narcissist, blaming everyone else for why they are on the rooftop and angry that the happy crowds below are calling out, “jump!, jump!”
    Really, it’s kind of pathetic.

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  15. George Rebane Avatar

    MichaelA 740pm – I guess my reply was a bit too focused, and didn’t address all the nuances that were wrapped in your 607pm. Could you please clarify the meaning of
    “In fact, the numbers might even make the case that because of our high rate of poverty, immigration to the US is highly sought after due to the consequent abundance on the other side of the curve.”
    And is there a possibility that our government’s definition of and criteria for poverty are not shared by people outside our borders who really are poor?

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  16. Michael Anderson Avatar
    Michael Anderson

    George asked: “And is there a possibility that our government’s definition of and criteria for poverty are not shared by people outside our borders who really are poor?”
    Which is why I asked, “are the numbers false?” That was what I was getting at. Do you know of any statistics that refute the data presented in the NYT article? I suspect what they were doing was the classic cherry-picking, but it sure looked pretty slick. And even though the numbers might be entirely accurate, you and I both know that the presentation is key.
    Again, my message is about the marketing. The Washington Times looks like The Globe compared to the NYT.

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