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by imh
3628 days ago
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I think you misread me completely. I am not saying that it's hard, but this is the best we can do, so we have to do it. I'm saying it's hard, but it turns out to be worth doing despite that. It just turns out that using the scientific method and using sound statistical reasoning from data is a really effective tool for learning about things, even when you cannot make bulletproof true/false statements. Think of it in a bayesian way. A small-medium experiment still moves your belief distribution, despite the fact that you remain relatively uncertain. |
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It's like using vast amount of information to create a self driving car vs. actually letting the car run on real roads. The first can only tell if it approximates reasonable driving, the second can tell if it avoids getting into dangerous situations. You can collect a lot of information on the US economy, but in the real world the FED is actively trying to manage things and you can remove that factor from the data.