Probability Interpretations - Prediction

An alternative account of probability emphasizes the role of prediction – predicting future observations on the basis of past observations, not on unobservable parameters. In its modern form, it is mainly in the Bayesian vein. This was the main function of probability before the 20th century, but fell out of favor compared to the parametric approach, which modeled phenomena as a physical system that was observed with error, such as in celestial mechanics. The modern predictive approach was pioneered by Bruno de Finetti, with the central idea of exchangeability – that future observations should behave like past observations. This view came to the attention of the Anglophone world with the 1974 translation of de Finetti's book, and has since been propounded by such statisticians as Seymour Geisser.

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Famous quotes containing the word prediction:

    Recent studies that have investigated maternal satisfaction have found this to be a better prediction of mother-child interaction than work status alone. More important for the overall quality of interaction with their children than simply whether the mother works or not, these studies suggest, is how satisfied the mother is with her role as worker or homemaker. Satisfied women are consistently more warm, involved, playful, stimulating and effective with their children than unsatisfied women.
    Alison Clarke-Stewart (20th century)