Probability and Predictions
Nearly everyone is very very very overconfident. We know this from experiments where people answer true/false trivia questions, then are asked to state how confident they are in their answer. If people’s confidence was well-calibrated, someone who said they were 99% confident (ie only 1% chance they’re wrong) would get the question wrong only 1% of the time. In fact, people who say they are 99% confident get the question wrong about 20% of the time.
It gets worse. People who say there’s only a 1 in 100,000 chance they’re wrong? Wrong 15% of the time. One in a million? Wrong 5% of the time. They’re not just overconfident, they are fifty thousand times as confident as they should be.