DanielLC comments on Pascal's Muggle: Infinitesimal Priors and Strong Evidence - Less Wrong
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I don't at all think that this is central to the problem, but I do think you're equating "bits" of sensory data with "bits" of evidence far too easily. There is no law of probability theory that forbids you from assigning probability 1/3^^^3 to the next bit in your input stream being a zero -- so as far as probability theory is concerned, there is nothing wrong with receiving only one input bit and as a result ending up believing a hypothesis that you assigned probability 1/3^^^3 before.
Similarly, probability theory allows you to assign prior probability 1/3^^^3 to seeing the blue hole in the sky, and therefore believing the mugger after seeing it happen anyway. This may not be a good thing to do on other principles, but probability theory does not forbid it. ETA: In particular, if you feel between a rock and a bad place in terms of possible solutions to Pascal's Muggle, then you can at least consider assigning probabilities this way even if it doesn't normally seem like a good idea.
True, but it seems crazy to be that certain about what you'll see. It doesn't seem that unlikely to hallucinate that happening. It doesn't seem that unlikely for all the photons and phonons to just happen to converge in some pattern that makes it look and sound exactly like a Matrix Lord.
You're basically assuming that your sensory equipment is vastly more reliable than you have evidence to believe, just because you want to make sure that if you get a positive, you won't just assume it's a false positive.