Dear Paul,

if you consider TWC prediction as a part of the probabilistic model, you get 4 probabilities for modelling a model which needs 3 probabilities to be specified. (the model is given by the 2-way table given by (Snow/not snow and snow prediction of 70%/not snow prediction of 70%).

The problem is that in this model the 4 numbers you give are inconsistent, so, when you accept the probabilities 2,5, and 6, you find that P(S/prediction of snow is 70%) = 0.34, which is not consistent with propositions 3 and 4.


If you accept probabilities 2,3 and 5, for example, you find that Pr(prediction of snow = 70% / not snow) = 0.002, and not 0.01 as given in the problem.

Hope that helps also,

Jean-Louis














2009/2/13 Lehner, Paul E. <pleh...@mitre.org>:
I was working on a set of instructions to teach simple
two-hypothesis/one-evidence Bayesian updating.  I came across a problem that
perplexed me.  This can't be a new problem so I'm hoping someone will clear
things up for me.



The problem

1.      Question: What is the chance that it will snow next Monday?

2.      My prior: 5% (because it typically snows about 5% of the days during
the winter)

3.      Evidence: The Weather Channel (TWC) says there is a "70% chance of
snow" on Monday.

4.      TWC forecasts of snow are calibrated.



My initial answer is to claim that this problem is underspecified.  So I add



5.      On winter days that it snows, TWC forecasts "70% chance of snow"
about 10% of the time

6.      On winter days that it does not snow, TWC forecasts "70% chance of
snow" about 1% of the time.



So now from P(S)=.05; P("70%"|S)=.10; and P("70%"|S)=.01 I apply Bayes rule
and deduce my posterior probability to be P(S|"70%") = .3448.



Now it seems particularly odd that I would conclude there is only a 34%
chance of snow when TWC says there is a 70% chance.  TWC knows so much more
about weather forecasting than I do.



What am I doing wrong?







Paul E. Lehner, Ph.D.

Consulting Scientist

The MITRE Corporation

(703) 983-7968

pleh...@mitre.org

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