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75th comments on Harry Potter and the Methods of Rationality discussion thread, part 16, chapter 85 - Less Wrong Discussion

9 Post author: FAWS 18 April 2012 02:30AM

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Comment author: Alejandro1 14 May 2012 11:50:41PM 5 points [-]

A common method to get an idea what is the "subjectively correct" number to use as your probability is to imagine yourself betting (a moderate amount of money you would be willing to risk) on the claim, and deciding which odds would you accept. For example, if you would accept betting up to $40 against $10 on your claim, but not more, then the probability you assign to it is 0.8. If you would be willing to bet only up to $10 on a chance of winning $90, then your probability is 0.1.

Comment author: 75th 15 May 2012 12:08:03AM *  3 points [-]

I actually considered revising all my estimates using the rubric "What would I pay for ten shares of this prediction on Intrade?" But I decided that that method would likely introduce a strong bias based on my financial situation, even if I tried to imagine myself to be in a financial situation closer to the median.