Should decisions be based on data or judgement?
Ian Ayres of Yale University Law School talks about the ideas in his new book, Super Crunchers: Why Thinking-by-Numbers Is the New Way to Be Smart.
Ayres argues for the power of data and analysis over more traditional decision-making methods using judgment and intuition. He talks with EconTalk host Russ Roberts about predicting the quality of wine based on climate and rainfall, the increasing use of randomized data in the world of business, the use of evidence and information in medicine rather than the judgment of your doctor, and whether concealed handguns or car protection devices such as LoJack reduce the crime rate.
The podcast closes with a postscript by Roberts challenging the use of sophisticated statistical techniques to analyze complex systems.