The Monty Hall Problem

  • 🚪🚪🚪Three doors.
  • Behind one is a car 🚗. Behind the other two are goats 🐐.
  • You pick a door. The gameshow host opens another, revealing a goat.
  • You can choose to stay with your original choice or switch. What should you do? [Give it a try!].
  • The Monty Hall problem became famous when a columnist, Marilyn vos Savant, known as the world’s smartest woman, said you should switch, resulting in hundreds of letters, including from the brightest minds in mathematics, arguing she was wrong.
  • This engrossing article by Steven Pinker shines a bright light on this dilemma.
  • People’s insensitivity to this lucrative but esoteric information pinpoints the cognitive weakness at the heart of the puzzle: we confuse probability with propensity.
  • A propensity is the disposition of an object to act in certain ways. Intuitions about propensities are a major part of our mental models of the world.
  • Probability is “the strength of one’s belief in an unknown state of affairs
  • The dependence of probability on ethereal knowledge rather than just physical makeup helps explain why people fail at the dilemma.
  • They intuit the propensities for the car to have ended up behind the different doors, and they know that opening a door could not have changed those propensities. But probabilities are not about the world; they’re about our ignorance of the world. New information reduces our ignorance and changes the probability.
  • Surely there is an analogy here to investing.
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