Mathematics of Probability, Misc

In finite probability theory, events are subsets S⊆U of the outcome set. Subsets can be represented by 1-dimensional column vectors. By extending the representation of events to two dimensional matrices, we can introduce "superposition events." Probabilities are introduced for classical events, superposition events, and their mixtures by using density matrices. Then probabilities for experiments or `measurements' of all these events can be determined in a manner exactly like in quantum mechanics (QM) using density matrices. Moreover the transformation of the density (...) matrices induced by the experiments or `measurements' is the Lüders mixture operation as in QM. And finally by moving the machinery into the n-dimensional vector space over ℤ₂, different basis sets become different outcome sets. That `non-commutative' extension of finite probability theory yields the pedagogical model of quantum mechanics over ℤ₂ that can model many characteristic non-classical results of QM. (shrink)

We will flip a fair coin infinitely many times. Al calls the first flip, claiming it will land heads. Betty calls every odd numbered flip, claiming they will all land heads. Carl calls every flip bar none, claiming they will all land heads. Pre-theoretically, it seems that Al's claim is infinitely more likely than Betty's, and that Betty's claim is infinitely more likely than Carl's. But standard, real-valued probability theory says that, while Al's claim is infinitely more likely than Betty's, (...) Betty's claim is exactly as likely as Carl's. I use John Conway's surreal numbers to capture these pre-theoretic judgements about the relative probabilities of Al's, Betty's, and Carl's claims. Surreal-valued probabilities also allow us to calculate precise numerical values for those claims. For instance, we will see that Betty's claim has a probability equal to the reciprocal of the product of the square root of cardinality of the continuum and the fourth root of 2. The article provides a 'user's guide' to surreal-valued probabilities and raises questions for further research. (shrink)

Brentano never published on Bertrand’s paradox but claimed to have a solution. Adrian Maître has recovered from the Franz Brentano Archive Brentano’s remarks on his solution. They do not give us a worked demonstration of his solution but only an incomplete and in places obscure justification of it. Here I attempt to identify his solution, to explain what seem to me the clearly discernible parts of his justification and to discuss the extent to which the justification succeeds in the light (...) of current work on Bertrand’s paradox. (shrink)

This article is mainly composed of two discussions. First, we introduce event-expressions, individual constants of a new type referring to events, not things. We learn this from Davidson’s famous formulation of event-sentences (§§1-3). The first half or more of this article is occupied with this discussion. The second half is devoted to the creation of a new analysis of probability, especially conditional probability. As seen in the author’s other work (Kaneko 2022), probability theory can be reconstructed with predicate logic in (...) the name of inductive logic. This article includes its development and its application to the notion of conditional probability (§§4-6). (shrink)

Events between which we have no epistemic reason to discriminate have equal epistemic probabilities. Bertrand’s chord paradox, however, appears to show this to be false, and thereby poses a general threat to probabilities for continuum sized state spaces. Articulating the nature of such spaces involves some deep mathematics and that is perhaps why the recent literature on Bertrand’s Paradox has been almost entirely from mathematicians and physicists, who have often deployed elegant mathematics of considerable sophistication. At the same time, the (...) philosophy of probability has been left out. In particular, left out entirely are the philosophical ground of the principle of indifference, the nature of the principle itself, the stringent constraint this places on the mathematical representation of the principle needed for its application to continuum sized event spaces, and what these entail for rigour in developing the paradox itself. This book puts the philosophy and its entailments back in and in so doing casts a new light on the paradox, giving original analyses of the paradox, its possible solutions, the source of the paradox, the philosophical errors we make in attempting to solve it and what the paradox proves for the philosophy of probability. The book finishes with the author’s proposed solution—a solution in the spirit of Bertrand’s, indeed—in which an epistemic principle more general than the principle of indifference offers a principled restriction of the domain of the principle of indifference. (shrink)

We provide counterexamples to some purported characterizations of dilation due to Pedersen and Wheeler :1305–1342, 2014, ISIPTA ’15: Proceedings of the 9th international symposium on imprecise probability: theories and applications, 2015).

The theory of lower previsions is designed around the principles of coherence and sure-loss avoidance, thus steers clear of all the updating anomalies highlighted in Gong and Meng's "Judicious Judgment Meets Unsettling Updating: Dilation, Sure Loss, and Simpson's Paradox" except dilation. In fact, the traditional problem with the theory of imprecise probability is that coherent inference is too complicated rather than unsettling. Progress has been made simplifying coherent inference by demoting sets of probabilities from fundamental building blocks to secondary representations (...) that are derived or discarded as needed. (shrink)

A historical review and philosophical look at the introduction of “negative probability” as well as “complex probability” is suggested. The generalization of “probability” is forced by mathematical models in physical or technical disciplines. Initially, they are involved only as an auxiliary tool to complement mathematical models to the completeness to corresponding operations. Rewards, they acquire ontological status, especially in quantum mechanics and its formulation as a natural information theory as “quantum information” after the experimental confirmation the phenomena of “entanglement”. Philosophical (...) interpretations appear. A generalization of them is suggested: ontologically, they correspond to a relevant generalization to the relation of a part and its whole where the whole is a subset of the part rather than vice versa. The structure of “vector space” is involved necessarily in order to differ the part “by itself” from it in relation to the whole as a projection within it. That difference is reflected in the new dimension of vector space both mathematically and conceptually. Then, “negative or complex probability” are interpreted as a quantity corresponding the generalized case where the part can be “bigger” than the whole, and it is represented only partly in general within the whole. (shrink)

A characterization result of dilation in terms of positive and negative association admits an extremal counterexample, which we present together with a minor repair of the result. Dilation may be asymmetric whereas covariation itself is symmetric. Dilation is still characterized in terms of positive and negative covariation, however, once the event to be dilated has been specified.

Merging of opinions results underwrite Bayesian rejoinders to complaints about the subjective nature of personal probability. Such results establish that sufficiently similar priors achieve consensus in the long run when fed the same increasing stream of evidence. Initial subjectivity, the line goes, is of mere transient significance, giving way to intersubjective agreement eventually. Here, we establish a merging result for sets of probability measures that are updated by Jeffrey conditioning. This generalizes a number of different merging results in the literature. (...) We also show that such sets converge to a shared, maximally informed opinion. Convergence to a maximally informed opinion is a (weak) Jeffrey conditioning analogue of Bayesian “convergence to the truth” for conditional probabilities. Finally, we demonstrate the philosophical significance of our study by detailing applications to the topics of dynamic coherence, imprecise probabilities, and probabilistic opinion pooling. (shrink)

Stochastic independence has a complex status in probability theory. It is not part of the definition of a probability measure, but it is nonetheless an essential property for the mathematical development of this theory. Bayesian decision theorists such as Savage can be criticized for being silent about stochastic independence. From their current preference axioms, they can derive no more than the definitional properties of a probability measure. In a new framework of twofold uncertainty, we introduce preference axioms that entail not (...) only these definitional properties, but also the stochastic independence of the two sources of uncertainty. This goes some way towards filling a curious lacuna in Bayesian decision theory. (shrink)

Early work on the frequency theory of probability made extensive use of the notion of randomness, conceived of as a property possessed by disorderly collections of outcomes. Growing out of this work, a rich mathematical literature on algorithmic randomness and Kolmogorov complexity developed through the twentieth century, but largely lost contact with the philosophical literature on physical probability. The present chapter begins with a clarification of the notions of randomness and probability, conceiving of the former as a property of a (...) sequence of outcomes, and the latter as a property of the process generating those outcomes. A discussion follows of the nature and limits of the relationship between the two notions, with largely negative verdicts on the prospects for any reduction of one to the other, although the existence of an apparently random sequence of outcomes is good evidence for the involvement of a genuinely chancy process. (shrink)

Jim Joyce argues for two amendments to probabilism. The first is the doctrine that credences are rational, or not, in virtue of their accuracy or “closeness to the truth” (1998). The second is a shift from a numerically precise model of belief to an imprecise model represented by a set of probability functions (2010). We argue that both amendments cannot be satisfied simultaneously. To do so, we employ a (slightly-generalized) impossibility theorem of Seidenfeld, Schervish, and Kadane (2012), who show that (...) there is no strictly proper scoring rule for imprecise probabilities. -/- The question then is what should give way. Joyce, who is well aware of this no-go result, thinks that a quantifiability constraint on epistemic accuracy should be relaxed to accommodate imprecision. We argue instead that another Joycean assumption — called strict immodesty— should be rejected, and we prove a representation theorem that characterizes all “mildly” immodest measures of inaccuracy. (shrink)

In this note, we consider a Merton model for default risk, where the firm’s value is driven by a Brownian motion and a compound Poisson process.

Dilation occurs when an interval probability estimate of some event E is properly included in the interval probability estimate of E conditional on every event F of some partition, which means that one’s initial estimate of E becomes less precise no matter how an experiment turns out. Critics maintain that dilation is a pathological feature of imprecise probability models, while others have thought the problem is with Bayesian updating. However, two points are often overlooked: (1) knowing that E is stochastically (...) independent of F (for all F in a partition of the underlying state space) is sufficient to avoid dilation, but (2) stochastic independence is not the only independence concept at play within imprecise probability models. In this paper we give a simple characterization of dilation formulated in terms of deviation from stochastic independence, propose a measure of dilation, and distinguish between proper and improper dilation. Through this we revisit the most sensational examples of dilation, which play up independence between dilator and dilatee, and find the sensationalism undermined by either fallacious reasoning with imprecise probabilities or improperly constructed imprecise probability models. (shrink)

This paper is concerned with representations of belief by means of nonadditive probabilities of the Dempster-Shafer (DS) type. After surveying some foundational issues and results in the D.S. theory, including Suppes's related contributions, the paper proceeds to analyze the connection of the D.S. theory with some of the work currently pursued in epistemic logic. A preliminary investigation of the modal logic of belief functions à la Shafer is made. There it is shown that the Alchourrron-Gärdenfors-Makinson (A.G.M.) logic of belief change (...) is closely related to the D.S. theory. The final section compares the critique of Bayesianism which underlies the present paper with some important objections raised by Suppes against this doctrine. -/- . (shrink)

Though there be no such thing as chance in the world, our ignorance of the real causes of any event begets a like species of belief or opinion.

Epistemic decision theory (EDT) employs the mathematical tools of rational choice theory to justify epistemic norms, including probabilism, conditionalization, and the Principal Principle, among others. Practitioners of EDT endorse two theses: (1) epistemic value is distinct from subjective preference, and (2) belief and epistemic value can be numerically quantified. We argue the first thesis, which we call epistemic puritanism, undermines the second.