# Difference between revisions of "Chance News 84"

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==Forsooth== | ==Forsooth== | ||

− | “Let's start with T. Rowe Price's U.S. stock fund lineup. I have plugged in 15 of its largest actively managed U.S. equity funds. Let's start at the top with T. Rowe Price Blue Chip Growth. [Note] that T. Rowe Price Growth Stock is a tight fit with a 1.00 correlation--the highest it can get. So, we know that owning those two large-growth funds is rather redundant. [Note] that Small-Cap Value has the lowest correlation at 0.91--thus, it's a good choice for diversification purposes.”<br><div align=right>[http://news.morningstar.com/articlenet/article.aspx?id=542360 “Fun With Mutual Correlation Matrices”] | + | “Let's start with T. Rowe Price's U.S. stock fund lineup. I have plugged in 15 of its largest actively managed U.S. equity funds. Let's start at the top with T. Rowe Price Blue Chip Growth. [Note] that T. Rowe Price Growth Stock is a tight fit with a 1.00 correlation--the highest it can get. So, we know that owning those two large-growth funds is rather redundant. [Note] that Small-Cap Value has the lowest correlation at 0.91--thus, it's a good choice for diversification purposes.”<br><div align=right>[http://news.morningstar.com/articlenet/article.aspx?id=542360 “Fun With Mutual Correlation Matrices”], Morningstar, April 2, 2012</div> |

− | Morningstar, April 2, 2012</div> | ||

Submitted by Margaret Cibes | Submitted by Margaret Cibes | ||

----- | ----- | ||

− | “This past week, Obama sports a 53-44 fav[orable] / unfav[orable] rating among women, but 43-54 among men. That's a whopping 20-point gender gap. .... In 2008, President Barack Obama won women 56-43, while narrowly edging out John McCain among men 49-48. That 12-point gender gap appeared massive at the time, but it appears that we're headed toward an even bigger margin in 2012.”<div align=right>[http://www.dailykos.com/story/2012/03/23/1077140/-Republicans-face-massive-gender-deficit?detail=hide “Republicans face massive gender deficit”] | + | “This past week, Obama sports a 53-44 fav[orable] / unfav[orable] rating among women, but 43-54 among men. That's a whopping 20-point gender gap. .... In 2008, President Barack Obama won women 56-43, while narrowly edging out John McCain among men 49-48. That 12-point gender gap appeared massive at the time, but it appears that we're headed toward an even bigger margin in 2012.”<div align=right>[http://www.dailykos.com/story/2012/03/23/1077140/-Republicans-face-massive-gender-deficit?detail=hide “Republicans face massive gender deficit”], Daily KOS, March 23, 2012</div> |

− | Daily KOS, March 23, 2012</div> | ||

Submitted by Margaret Cibes | Submitted by Margaret Cibes | ||

----- | ----- | ||

+ | From <i>Significance</i> magazine, February 2012:<br> | ||

+ | |||

+ | “It is ridiculous to believe that the legal profession has to get involved with the complex parts of statistics. The statistics of gambling uses the frequency approach to statistics, and that is straightforward. The reasoning involved with Bayes is more complex and we cannot expect juries to accept it.” | ||

+ | <div align=right>[http://onlinelibrary.wiley.com/doi/10.1111/j.1740-9713.2012.00547.x/pdf Letter to the editor]</div> | ||

+ | “Strangely, DNA experts are <i>required</i> to give probabilities for their evidence of matching; fingerprint expert[s] are <i>forbidden</i> to.” | ||

+ | <div align=right>[ http://onlinelibrary.wiley.com/doi/10.1111/j.1740-9713.2012.00539.x/pdf “Fingerprints at the crime-scene: Statistically certain, or probable?”]</div> | ||

+ | “We cannot increase the probability of winning a [lottery] prize as this is fixed. However, we can increase the amount we can expect to win if we do strike [it] lucky …. [C]hoosing popular combinations of numbers decreases the expected value of your ticket as you have a higher probability of having to share your prize if you win. …. [W]hen you select your numbers, you may as well try to choose a less popular combination that might increase your expected value. Unfortunately, it is not possible to determine what exactly the unpopular combinations are: there is not enough data.” | ||

+ | <div align=right>[http://onlinelibrary.wiley.com/doi/10.1111/j.1740-9713.2012.00540.x/pdf “Playing the lottery with a little bit of stats know-how…”]</div> | ||

+ | Submitted by Margaret Cibes | ||

==Chocolate hype== | ==Chocolate hype== |

## Revision as of 15:27, 4 April 2012

## Quotations

"There's a saying in the San Francisco Bay Area: There are lies, damned lies, and next bus."

*Talk of the Nation*, NPR, 29 March 2012

Submitted by Jerry Grossman

"Skepticism enjoins scientists — in fact all of us — to suspend belief until strong evidence is forthcoming, but this tentativeness is no match for the certainty of ideologues and seems to suggest to many the absurd idea that all opinions are equally valid. ...What else explains the seemingly equal weight accorded to the statements of entertainers and biological researchers on childhood vaccines?..."

*New York Times*, 13 February 2012

Submitted by Bill Peterson

From *Significance* magazine, February 2012:

“Diaconis and Mosteller … introduced an adage that they called the *law of truly large numbers*: with a large enough sample, almost anything outrageous will happen.”

“[After a drug trial] no one in the world wants to know what the chance is that, for this experimental group, A was better than B …. We know exactly what the chance is, because the event has already happened. …. The probability that A was better, given this evidence, is either 1 or 0. …. What the drug company actually wants to know is, given the evidence from the trial, and possibly given other evidence about the two drugs, what are the chances that a greater proportion of *future patients* will get better if they take A instead of B? …. [After a hypothesis test] the civilian assumes that his original question has been answered and that the probability that A is better is high. But he should not believe this, because of course it might not be true. The p-value can be small, as small as you like, and the probability that A is better could still be low.”

Submitted by Margaret Cibes

## Forsooth

“Let's start with T. Rowe Price's U.S. stock fund lineup. I have plugged in 15 of its largest actively managed U.S. equity funds. Let's start at the top with T. Rowe Price Blue Chip Growth. [Note] that T. Rowe Price Growth Stock is a tight fit with a 1.00 correlation--the highest it can get. So, we know that owning those two large-growth funds is rather redundant. [Note] that Small-Cap Value has the lowest correlation at 0.91--thus, it's a good choice for diversification purposes.”

Submitted by Margaret Cibes

“This past week, Obama sports a 53-44 fav[orable] / unfav[orable] rating among women, but 43-54 among men. That's a whopping 20-point gender gap. .... In 2008, President Barack Obama won women 56-43, while narrowly edging out John McCain among men 49-48. That 12-point gender gap appeared massive at the time, but it appears that we're headed toward an even bigger margin in 2012.”

Submitted by Margaret Cibes

From *Significance* magazine, February 2012:

“It is ridiculous to believe that the legal profession has to get involved with the complex parts of statistics. The statistics of gambling uses the frequency approach to statistics, and that is straightforward. The reasoning involved with Bayes is more complex and we cannot expect juries to accept it.”

“Strangely, DNA experts arerequiredto give probabilities for their evidence of matching; fingerprint expert[s] areforbiddento.”

“We cannot increase the probability of winning a [lottery] prize as this is fixed. However, we can increase the amount we can expect to win if we do strike [it] lucky …. [C]hoosing popular combinations of numbers decreases the expected value of your ticket as you have a higher probability of having to share your prize if you win. …. [W]hen you select your numbers, you may as well try to choose a less popular combination that might increase your expected value. Unfortunately, it is not possible to determine what exactly the unpopular combinations are: there is not enough data.”

Submitted by Margaret Cibes

## Chocolate hype

“Association Between More Frequent Chocolate Consumption and Lower Body Mass Index”

*Archives of Internal Medicine*, March 26, 2012

This report (full text not yet available online) was published as a “research letter.” It involved about 1000 Southern Californians, who were surveyed about their eating and drinking habits and whose BMIs were computed. Funded by the National Institutes of Health, the study found that, among this group, people who ate chocolate more frequently had lower BMIs than less frequent chocolate eaters. The authors, in the “research letter” at least, apparently did not claim any cause-and-effect result and indicated that a controlled study would be needed before jumping to any such conclusion.

The Knight Science Journalism Tracker (subtitled “Peer review *within* science journalism”) presented a nice critique of press accounts of the “research letter” in “Eat Chocolate. Lose Weight. Yeah, right.”.

Before I became aware of the Knight project, I had tracked down a number of press accounts of the study and was encouraged to find it appropriately described in the articles, if not in the headlines, as non-definitive. (This is not to say that all reports were accurate or complete with respect to other aspects of the study.) Comparing media reports to original study reports might be a good exercise for a stats class, when a similarly enticing topic presents itself in the news, and when the original study report, or even an abstract, is available for comparison.

(a) *The New York Times*[1]: “Dietary studies can be unreliable, ... and it is difficult to pinpoint cause and effect.”

(b) BBC News[2]: “But the findings only suggest a link - not proof that one factor causes the other.”

(c) TODAY [3]: “The researchers only found an association, not a direct cause-effect link.”

(d) *The Times of India*[4]: “[T]he reasons behind this link between chocolate consumption and weight loss remain unclear.”

(e) Reuters[5]: “Researchers said the findings … don't prove that adding a candy bar to your daily diet will help you shed pounds.”

(f) *Poughkeepsie Journal*[6]: “The study is limited. It was observational, ... rather than a controlled trial ....”

(g) *The Wall Street Journal*[7]: “[B]efore people hoping to lose weight indulge in an extra scoop of chocolate fudge swirl, the researchers caution that the study doesn't prove a link between frequent chocolate munching and weight loss…..”

### Discussion

1. According to Knight, the original purpose of the project was to study “non-cardiac effects on statin drugs,” not chocolate consumption. Should this information have been reported in the articles? Why or why not?

2. Do you think that the size of the chocolate-consuming group was the same as the size of the entire group of respondents? Why would you want to know the “sample” size behind the chocolate results?

3. How would you monitor a controlled study involving a group of people who were instructed to eat chocolate occasionally and another group who were instructed to eat it more frequently?

Submitted by Margaret Cibes