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Chang Welton SF

February 25, 2016 / 08:57

This episode covers forecasting techniques, cognitive biases, and the importance of research in forecasting. The guest discusses their experience with the Good Judgment Project and shares insights on improving forecasting accuracy.

The guest, a former military personnel, was introduced to forecasting by Valentino, a political scientist from Dartmouth. They began their journey in forecasting after returning from Baghdad, Iraq, and were eager to apply their intellectual curiosity to this field.

Key discussions include the importance of holding strong opinions weakly, which allows forecasters to adapt their views based on new information. The guest emphasizes the need to conduct thorough research beyond initial sources to understand complex situations, such as the dynamics of Boko Haram.

Additionally, the guest highlights the significance of recognizing cognitive biases that can affect forecasting accuracy. They recommend reading extensively and practicing forecasting to improve skills over time.

The episode concludes with a comparison between forecasting and traditional research, noting that forecasting allows for more freedom in approach while research is often more rigid in methodology.

TLDR

The episode discusses forecasting techniques and cognitive biases, emphasizing research and adaptability for improved accuracy.

Episode

8:57
00:00:08
I first got introduced to the forecast ra by a long time mine at Dartmouth been Valentino who is
00:00:17
a political scientist and he alerted me to an opportunity to forecast with the good judgment project and this was right
00:00:28
around the time when i was leaving baghdad iraq after my second tour there and i was looking for some way of doing
00:00:39
forecasting because i've been something that I've been interested in for for a
00:00:43
while and that's why been introduced me to this idea and you know I the timing
00:00:50
worked out as well I was able to come back to the United States and that was right around the time the the first year
00:00:56
of the tournament kicked off and I just went from there I think that bottom line intellectual
00:01:05
curiosity and just a willingness to put in the work and to think hard about specific problems and try to be as
00:01:14
objective as possible is what allowed me to make more accurate forecasts and others within the pool I wouldn't
00:01:22
necessarily say that you know what we did or what I did as an individual is the best possible at forecasting because
00:01:30
they're you know can be so many more improvements I I think in terms of how much you know about a specific subject
00:01:37
you can always improve your level of knowledge I think you can always improve you know how you're you're specifically
00:01:45
viewing a situation how that situation could potentially evolve so having a greater understanding of how humans
00:01:52
interact with each other relate to each other the political contours of specific
00:01:56
situations and events those are all things that you can gain greater knowledge on and get better at
00:02:01
forecasting in so yeah yeah being open-minded and being open-minded enough to realize that you need to remain open
00:02:08
minded I think are some of the keys to being you know for for my own forecasting performance
00:02:20
so I really had three general rules when I made forecasts especially when I made
00:02:28
my first forecast on a new question or a situation I'd never seen before so the
00:02:34
first thing I would say is to be a good forecasters you have to be you have to hold strong opinions weekly and what I
00:02:43
mean by that is that you do all of your homework up front and you really present
00:02:49
a good case for why you feel a certain way on a specific question and defending your probability probability estimate at
00:02:57
that point but when you recognize that somebody else has more information or better information than you having the
00:03:05
ability to change your mind swiftly to that new forecast I think that was one of the keys to why I was able to you
00:03:15
know improve my performance over time I think many people really get stuck on their initial forecast and they fall in
00:03:22
love with it and wind up becoming going into a defensive Crouch when it comes to
00:03:28
defending their opinion whereas I was on my team sort of notorious for being able
00:03:34
to switch from one a very hard position all the way to the opposite when I saw new information and come up that led me
00:03:43
to do that the second thing is to be willing to put in the homework and to put in the effort to understand a
00:03:52
situation go beyond the Wikipedia page and to go beyond the initial couple of news articles and to really try to
00:04:00
understand you know what is it what is it about Boko Haram and their composition that you know is allowing
00:04:08
them to make the kinds of military gains that there that we're seeing and how
00:04:11
fragile or stable are those military gains compared to other like organizations and to you know not just
00:04:19
to say Oh Boko Haram looks like every other organization that I've encountered
00:04:23
to this point but to say to really try to understand what's going on there and
00:04:28
to contextualize that appropriately and I think the the third thing is to have in your mind the kinds of
00:04:38
psychological and cognitive biases that you could potentially fall prey to and to be able to overcome those by you know
00:04:48
listening to your teammates by self-critique and to recognize that you know whatever forecast and argument that
00:05:00
you're putting forward now you should be able to alter it or change it or improve
00:05:06
it in light of new information so you know keeping in mind the cognitive biases that really impact and influence
00:05:14
and reduce our accuracy and to consciously try to D bias them I think you could really do two things
00:05:27
to become a good forecaster and one eye one is to read and not just read say Phil's book super forecasting or Dan
00:05:40
economies book Thinking Fast and Slow which I think many of the forecasters who excelled in torment have read and
00:05:47
done I also think that you know reading say histories like the guns of august or
00:05:55
books about bureaucracy by james q wilson and others really improves your your knowledge base and gives you a
00:06:05
better context for looking at situations and being able to figure out whether there are any commonalities or patterns
00:06:12
there that you can pick up on and that could potentially apply to future situations that look like that so being
00:06:19
well-read is I think a contributor to forecasting success the second thing is to just to practice don't get hung up on
00:06:30
wrong forecasts that you make initially you know don't don't get overly you know
00:06:36
sensitive to those results but to approach forecasting as something that you can improve on and have that growth
00:06:46
mindset when it comes to making better forecasts and so from there you're able
00:06:52
to say okay I start at some baseline level I got some feedback tells me I should improve an XY and Z and to really
00:06:58
make a concerted effort to do that through practice I think being a forecaster and being a
00:07:08
researcher are similar and different I think that one of the great things about being a forecaster is that we really
00:07:18
weren't constrained by any of the kind of customs or sociology around for a custom because we were the ones coming
00:07:27
up with that and so we were able to explore and be very free in how we approach forecasting whereas I think
00:07:37
research while you have some freedom in the hypotheses that you are tackling a lot of the methodology and the structure
00:07:47
around writing papers and peer review and submissions is very much rigid and you must follow the the specific process
00:07:58
so i think that that the highlights a major difference in forecasting versus doing the research in that the research
00:08:08
seem to be much more process oriented although obviously there there's an outcome component to it whereas when
00:08:16
when we were doing strictly forecasting really people only care that we were able to come up with the right answers
00:08:24
rather than you know how exactly we we got there so yeah they're different they're different animals
00:08:48
you

Episode Highlights

  • The Importance of Curiosity
    Intellectual curiosity and hard work lead to better forecasting accuracy.
    “Intellectual curiosity and willingness to work are key to accurate forecasts.”
    @ 01m 02s
    February 25, 2016
  • Three Rules for Forecasting
    Strong opinions, thorough research, and awareness of biases are essential for forecasters.
    “Hold strong opinions weakly; be ready to change your mind.”
    @ 02m 20s
    February 25, 2016
  • The Difference Between Research and Forecasting
    Forecasting allows for more freedom compared to the rigid structure of research.
    “They’re different animals.”
    @ 08m 31s
    February 25, 2016

Episode Quotes

  • Intellectual curiosity and willingness to work are key to accurate forecasts.
    Chang Welton SF
  • You can always improve your level of knowledge.
    Chang Welton SF
  • Hold strong opinions weakly; be ready to change your mind.
    Chang Welton SF
  • Being well-read contributes to forecasting success.
    Chang Welton SF
  • Approach forecasting as something you can improve on.
    Chang Welton SF

Key Moments

  • Introduction to Forecasting00:08
  • Leaving Baghdad00:30
  • Keys to Accurate Forecasting02:10
  • Three General Rules02:20
  • Research vs. Forecasting08:00

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