How to Dispel Your Illusions

We previously posted an article about his book here

In 1955, when Daniel Kahneman was twenty-one years old, he was a lieutenant in the Israeli Defense Forces. He was given the job of setting up a new interview system for the entire army. The purpose was to evaluate each freshly drafted recruit and put him or her into the appropriate slot in the war machine. The interviewers were supposed to predict who would do well in the infantry or the artillery or the tank corps or the various other branches of the army. The old interview system, before Kahneman arrived, was informal. The interviewers chatted with the recruit for fifteen minutes and then came to a decision based on the conversation. The system had failed miserably. When the actual performance of the recruit a few months later was compared with the performance predicted by the interviewers, the correlation between actual and predicted performance was zero.

Kahneman had a bachelor’s degree in psychology and had read a book, Clinical vs. Statistical Prediction: A Theoretical Analysis and a Review of the Evidence by Paul Meehl, published only a year earlier. Meehl was an American psychologist who studied the successes and failures of predictions in many different settings. He found overwhelming evidence for a disturbing conclusion. Predictions based on simple statistical scoring were generally more accurate than predictions based on expert judgment.

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