(1) and (2) are not premises. The conclusion of his argument is that either (1), (2) or (3) is very likely true. The argument is not supposed to show that we are living in a simulation.
The negation of (1) and (2) are premises if the conclusion is (3). So when I say they are "true" I mean that, for example, in the first case, that humans WILL reach an advanced level of technological development. Probably a bit confusing, my mistake.
You seem to be saying that (2) is true -- that it is very unlikely that our post-human descendants will create a significant number of highly accurate simulations of their descendants.
I think Bostrom's argument applies even if they aren't "highly accurate". If they are simulated at all, you can apply his argument. I think the core of his argument is that if simulated minds outnumber "real" minds, then it's likely we are all simulated. I'm not really sure how us being "accurately simulated" minds changes things. It does make it easier to reason outside of our little box - if we are highly accurate simulations then we can actually know a lot about the real universe, and in fact studying our little box is pretty much akin to studying the real universe.
This, I think, is a possible difference between your position and Bostrom's. You might be denying the Self-Sampling Assumption, which he accepts, or you might be arguing that simulated and unsimulated minds should not be considered part of the same reference class for the purposes of the SSA, no matter how similar they may be (this is similar to a point I made a while ago about Boltzmann brains in this rather unpopular post).
Let's assume I'm trying to make conclusions about the universe. I could be a brain in a vat, but there's not really anything to be gained in assuming that. Whether it's true or not, I may as well act as if the universe can be understood. Let's say I conclude, from my observations about the universe, that there are many more simulated minds than non-simulated minds. Does it then follow that I am probably a simulated mind? Bostrom says yes. I say no, because my reasoning about the universe that led me to the conclusion that there are more simulated minds than non-simulated ones is predicated on me not being a simulated mind. I would almost say it's impossible to reason your way into believing you're in a simulation. It's self-referential.
I'm going to have to think about this harder, but try and criticise what I'm saying as you have been doing because it certainly helps flesh things out in my mind.
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Matrix multiplication
Could somebody explain to me, in a way I'd actually understand, how to (remember how to) go about multiplying a pair of matrixes? I've looked at Wikipedia, I've read linear algebra books up to where they supposedly explain matrixes, and I keep bouncing up against a mental wall where I can't seem to remember how to figure out how to get the answer.
Perhaps explicitly thinking of them as systems of equations (or transformations on a vector) would be helpful.
As an example, suppose you are asked to multiply matrices A and B, where A is [1 2, 0 4, -1 2] (the commas represent the end of a row) and B is [2 1 0, 3 1 2]. Start out by taking the rightmost matrix (B in this case) and converting it into a series of equations, one for each row. So since the first row is 2 1 0, the relevant equation will be 2x + 1y + 0z. Assign each of these equations to some other variable. So we now have
X = 2x + y
Y = 3x + y + 2z
Now do the same thing with the matrix on the left, except this time use the new variables you've introduced (X and Y), so the three equations you end up with (one for each row) will be
X + 2Y
4Y
-X + 2Y
Now that you have these formulae, substitute in the values of X and Y based on your earlier equations. You get
(2x + y) + 2(3x + y + 2z)
4(3x + y + 2z)
-(2x + y) + 2(3x + y + 2z)
Simplifying, you get
8x + 3y + 4z
12x + 4y + 8z
4x + y + 4z
The coefficients of these equations are the result of the multiplication. So the product of the two matrices is [8 3 4, 12 4 8, 4 1 4].
I'll admit this is not the quickest way to go about multiplying matrices, but it might be easier for you to remember since it doesn't seem as arbitrary. And maybe once you get used to thinking about multiplication this way, the usual visual rule will start making more sense to you.