Skip to main content

How to Predict the Unpredictable - William Poundstone ****

There's a certain kind of maths title that delights. It's not the kind of pure maths you'd find in an Ian Stewart book, where maths is an intricate, latticework puzzle like a net of spun sugar that need have no connection to the real world. No, this is maths as impure and dirty as it gets. It sneaks up behind us and takes us by surprise, because this is the maths at the interface with psychology - maths that often challenges our beliefs and understanding of the world. It can be both deeply satisfying and quite interesting in a QI fashion, all at the same time.

I suppose the classic of this field is Freakonomics, though I would also recommend The Tiger that Isn't and (in a modest way), my own Dice World. What William Poundstone does with great aplomb here is to unpick our dubious relationship with randomness. In the first half of the book he points out how we are particularly poor envisaging randomness, and how, as a result, if you understand how people get it wrong, it's possible to get an unexpected edge in everything from rock - paper - scissors to multiple choice questions. This all starts with a lovely description of the 'outguessing machine' an incredibly simple device that nonetheless is generally capable at beating humans at a guessing game.

The second part of the book is rather more tenuously linked by the idea of a 'hot hand' - the sport (and specifically basketball) delusion that people who are on a winning streak are more likely to succeed again - coupled with the gamblers' fallacy, which says that, for instance, after a run of black on a roulette wheel, red is more likely to come up. As Poundstone points out, these two apparently contradictory fallacies are actually linked, as the first is only applied in something involving human skill, while the second is reserved for mechanical outcomes. He shows how an understanding of these can help with football betting, property prices and the stock market.

I loved the book until well over half way through. Even in the apparently straightforward answer to 'how to outguess the lottery', Poundstone goes further than the traditional 'by using random selections, rather than human choice.' He isn't going over the boundary to say you can predict the outcome - that really is unpredictable - but rather how to maximise your winnings if you do win. Towards the end of the book, though the content got too specialist for me. There was too much on sports betting, which I have no interest in, and then on ways to beat the stock market, a section which is far too long and technically detailed for the general reader. It's a real shame that this section is used to end the book as it means the whole thing ends on quite a downer.

Don't get me wrong - the concept of beating the stock market is mind-boggling, as the market itself is the kind of chaotic system that isn't possible to forecast. But Poundstone shows how some measures, dependent on the inability of traders to overcome our ability to read patterns into randomness that isn't there, give a long term guidance on action.  And this would have been great if covered in five pages. But as the 36 page finale of the book it's a disappointment. 

So this is mostly a great book - do read it and be prepared to be delighted - but unless you are a sports better or play the markets be prepared for a little disappointment towards the end.


Paperback 

Kindle 
Review by Brian Clegg

Comments

Popular posts from this blog

Ancestral Night (SF) - Elizabeth Bear *****

Only a couple of weeks ago, reviewing a 1960s SF book, I bemoaned the fact that science fiction novels of ideas are less common now. Although it is correctly labelled a space opera, Ancestral Night delivers ideas with aplomb.

Let's deal with the space opera aspect first. Elizabeth Bear provides some excellent adventure scenes in space, and we've the usual mix of huge spaceships and interesting aliens. Main character Haimey Dz is an engineer on a ship that salvages wrecks - but, as we gradually discover - she also has a forgotten past. A major feature of the storyline (one that seems to link to the medieval idea of the lost wisdom of the past) is ancient technology from a long-dead race with capabilities, notably manipulating spacetime mentally (Bear has yet to point out that the travel technologies used here could manipulate time as well as space), which fit well with Arthur C. Clarke's magic definition.

I particularly liked the (surely intentional) nods to the much-misse…

The Creativity Code - Marcus du Sautoy *****

At first glance this might just be another 'What AI is good at and not so good at' title. And in a way, it is. But, wow, what a brilliant book! Marcus du Sautoy takes us on a tour of what artificial intelligence has achieved (and possibly can in the future achieve) in a range of fields from his own of mathematics, through game playing, music, art and more.

After a little discussion of what creativity is, we start off with the now very familiar story of DeepMind's AlphaGo and its astonishing ability to take on the hugely challenging game of Go. Even though I've read about this many times before, du Sautoy, as a Go player and mathematician, gives a real feel for why this was such a triumph - and so shocking. Not surprisingly he is also wonderful on what mathematicians actually do, how computers have helped them to date and how they have the potential to do far more in the future. After all, mathematics is by far the closest science to game playing, as it has strict rule…

The Demon in the Machine - Paul Davies *****

Physicists have a habit of dabbling in biology and, perhaps surprisingly, biologists tend to be quite tolerant of it. (I find it hard to believe the reverse would be true if biologists tried to do physics.) Perhaps one reason for that tolerance is Schrödinger’s lecture series and book What is Life?, which had a huge impact on molecular biology and with a reference to which, not surprisingly, Paul Davies begins his fascinating book. 

At the heart of the The Demon in the Machine (we'll come back to that demon in a moment) is the relationship between life and information. In essence, Davies points out that if we try to reduce life to its simple physical components it is like trying to work with a computer that has no software. The equivalent of software here is information, not just in the best publicised aspect of the information stored in the DNA, but on a far broader scale, operating in networks across the organism.
This information and its processing gives life its emergent compl…