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Everyone should take a Probabilities course at least once.

The sad reality:

Most people know nothing about probabilities. This makes them gullible and easy to trick with numbers.

I have a story about a psychic. It got weird quickly:
Before telling you about the psychic, I partnered with @brilliantorg to discuss their Introduction to Probability course.

Here is what I love about them:

They break fundamentals into core building blocks organized in bite-sized lessons.

Courses at: brilliant.org/svpino.
Alright, back to the psychic.

He sees things nobody else can.

I showed him a stack of 10 colored cards and asked him to guess which color I would draw.

• 6 cards were blue.
• 3 cards were red.
• 1 card was green.

I drew a blue card, and the psychic got it right!
The psychic knew there were 3 different colors, but I never told him the distribution.

I'm very skeptical. Was he guessing?

What's the probability of this person guessing and getting the correct answer?
There were 6 blue cards.

If the psychic was guessing, he had 1 out of 3 chances of guessing "blue." Therefore, he will likely get it correctly 6/10 x 1/3 = 1/5 = 20% of the time.

Not impressive, so I tried again.
I put the blue card back in the stack, shuffled it, and drew a red card.

The psychic got it correctly again!

This time, 3 out of 10 cards were red. The psychic had 3/10 x 1/3 = 1/10 = 10% probability of guessing correctly.

I had to try again!
I drew two more cards: first, another red card, and finally, the green card.

The psychic answered correctly every time!

We know that the probability of guessing the red card is 10%, but the likelihood of guessing the green card is even smaller: 1/10 x 1/3 = 1/30 = 3.33%.
But here is where things get weird:

What's the probability he guessed all four consecutive cards?

We can use the product rule to answer this:

1/5 x 1/10 x 1/10 x 1/30 = 1/15000 = 0.00007

That's almost impossible!
This guy must have real powers, right?

Unless... Maybe there's something I didn't tell you:

This was not the only "psychic" I spoke to. I ran the same experiment with 100 people.
How easy is it for any person to make one incorrect prediction?

The probability of somebody guessing correctly is 1/3. Guessing all four colors is (1/3)^4 = 1/81.

1 - 1/81 = 0.99

It's 99% likely a person makes one mistake.

But what if I ask 100 people?
We can use the product rule again: (1 - 1/81)^100.

The probability of every person making at least one mistake is much lower now: 29%.

See what's happening?
I ran the experiment 100 times and found one person that guessed all four colors.

I then showed him to you and declared he is a psychic, and the numbers back me up.

This is "cherry picking."

A lot of what you read every day suffers from this. Don't let it happen to you.
Don't forget to check @brilliantorg's Intro to Probabilities course!

This course is different.

The best part: it teaches Probabilities from first principles.

Click here for 30 free days + 20% off an annual membership: brilliant.org/svpino!
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