Two types of error that influence decision-making - Deepstash
Two types of error that influence decision-making

Two types of error that influence decision-making

When it comes to accuracy in decision-making, there are two types of error:

  • Bias, which is an average error
  • Noise is the variability of error.

For example:

In a noisy system, judges give vastly different sentences to defendants who committed the same crime. Some judges give a one-month sentence, others one year, others seven years, and others somewhere in between.

In a biased system, judges might consistently give sentences too high for certain crimes.

In many situations, noise is a more severe source of inaccuracy and error than bias.

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makidd

I see video and web as a way to reach and inspire people.

Noise is unwanted variability in judgments. Noise covers another way we make systematic errors in decision-making.

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