The aim of this article is to assess the impact of Big Data technologies for insurance ratemaking, with a special focus on motor products.The first part shows how statistics and insurance mechanisms adopted the same aggregate viewpoint. It made visible regularities that were invisible at the individual level, further supporting the classificatory approach of insurance and the assumption that all members of a class are identical risks. The second part focuses on the reversal of perspective currently occurring in data analysis (...) with predictive analytics, and how this conceptually contradicts the collective basis of insurance. The tremendous volume of data and the personalization promise through accurate individual prediction indeed deeply shakes the homogeneity hypothesis behind pooling. The third part attempts to assess the extent of this shift in motor insurance. Onboard devices that collect continuous driving behavioural data could import this new paradigm into these products. An examination of the current state of research on models with telematics data shows however that the epistemological leap, for now, has not happened. (shrink)

It is far from obvious that outside of highly specialized domains such as commercial agriculture, the methodology of biometrics—quantitative comparisons over groups of organisms—should be of any use in today’s bioinformatically informed biological sciences. The methods in our biometric textbooks, such as regressions and principal components analysis, make assumptions of homogeneity that are incompatible with current understandings of the origins of developmental or evolutionary data in historically contingent processes, processes that might have come out otherwise; the appropriate statistical methods are (...) those suited to random walks, not normal distributions. A valid methodology would further require that especially close attention be paid to the difference between aspects of processes that are plastic, those that encode their own histories or biographies, and the very small fraction of quantifications that can usefully and realistically be modeled as varying by colored noise around a central tendency that itself has some quantitative meaning. This point of view—that only a vanishingly small fraction of the quantitative information borne by any living organism is worth quantifying—is illustrated by some data on a human birth defect, namely, fetal alcohol syndrome. In a suggestive metaphor, the biometrician is like the pilgrim in Friedrich’s painting Der Wanderer über dem Nebelmeer, uncertain as to whether to measure the mountains or the clouds. The mountains stand for contingent history, the clouds for the subset of the data most closely matching controlled experiments suitable for quantitative biometric summary. Biometrics applies to the clouds, not the mountains. The success of statistical methods comes at the expense of all the theories that we simultaneously hold to be true about the biological materials to which they both pertain. Biometrics is thus complementary to all of the emerging reductionist sciences of biological structure. (shrink)

Unification of natural science and social science is a centuries-old, unmitigated debate. Natural science has a chronological advantage over social science because the latter took time to include many social phenomena in its fold. History of science witnessed quite a number of efforts by social scientists to fit this discipline in a rational if not mathematical framework. On the other hand a tendency among some physicists has been observed especially since the last century to recast a number of social phenomena (...) in the mould of events taking place in physical world and governed by well-known systems and equations of physics. It necessitated the introduction of social physics as a new inter-disciplinary subject. Obviously this attempt is aimed at explaining hitherto unsolved or highly debated issues of social science. Physicists are showing special interest on problems on economics, ranging from some topics of normative economics to the movement of prices of derivatives. Statistics has been widely used in these attempts and at least two sub-disciplines of the subject, namely, stochastic process and time series analysis deserve special mention. All these research activities gave birth to another inter-disciplinary subject named as econophysics. Interestingly, global financial crisis of 2007–08 has revived the need of determination of prices of derivatives in a more accurate manner. This article adumbrates a sketch of the theoretical synthesis between physics and economics and the role played by statistics in this process. (shrink)

This paper has the aim of making Johannes von Kries’s masterpiece, Die Principien der Wahrscheinlichkeitsrechnung of 1886, a little more accessible to the modern reader in three modest ways: first, it discusses the historical background to the book ; next, it summarizes the basic elements of von Kries’s approach ; and finally, it examines the so-called “principle of cogent reason” with which von Kries’s name is often identified in the English literature.

Quantitative researchers often discuss research ethics as if specific ethical problems can be reduced to abstract normative logics (e.g., virtue ethics, utilitarianism, deontology). Such approaches overlook how values are embedded in every aspect of quantitative methods, including ‘observations,’ ‘facts,’ and notions of ‘objectivity.’ We describe how quantitative research practices, concepts, discourses, and their objects/subjects of study have always been value-laden, from the invention of statistics and probability in the 1600s to their subsequent adoption as a logic made to appear as (...) if it exists prior to, and separate from, ethics and values. This logic, which was embraced in the Academy of Management from the 1960s, casts management researchers as ethical agents who ought to know about a reality conceptualized as naturally existing in the image of statistics and probability (replete with ‘constructs’), while overlooking that S&P logic and practices, which researchers made for themselves, have an appreciable role in making the world appear this way. We introduce a different way to conceptualize reality and ethics, wherein the process of scientific inquiry itself requires an examination of its own practices and commitments. Instead of resorting to decontextualized notions of ‘rigor’ and its ‘best practices,’ quantitative researchers can adopt more purposeful ways to reason about the ethics and relevance of their methods and their science. We end by considering implications for addressing ‘post truth’ and ‘alternative facts’ problems as collective concerns, wherein it is actually the pluralistic nature of description that makes defending a collectively valuable version of reality so important and urgent. (shrink)

The history of economic thought witnessed several prominent economists who took seriously models and concepts in physics for the elucidation and prediction of economic phenomena. Econophysics is an emerging discipline at the intersection of heterodox economics and the physics of complex systems, with practitioners typically engaged in two overlapping but distinct methodological programs. The first is to export mathematical methods used in physics for the purposes of studying economic phenomena. The second is to export mechanisms in physics into economics. A (...) conclusion is drawn that physics transfer is often justified at the level of mathematical transfer but unjustified at the level of mechanistic transfer. (shrink)

Randomness, uncertainty, and lack of regularity had concerned savants for a long time. As early as the seventeenth century, Blaise Pascal conceived the arithmetic of chance for gambling. At the height of positional astronomy, mathematicians developed a theory of errors to cope with random deviations in astronomical observations. In the nineteenth century, pioneers of statistics employed probabilistic calculus to define “normal” and “pathological” in the distribution of social characters, while physicists devised the statistical-mechanical interpretation of thermodynamic effects. By the end (...) of the century, a probabilistic worldview—as historians Lorrain Daston, Theodore Porter, and Stephen Stigler. (shrink)

The phenomenon of regression toward the mean is notoriously liable to be overlooked or misunderstood; regression fallacies are easy to commit. But even when regression phenomena are duly recognized, it remains perplexing how they can feature in explanations. This article develops a philosophical account of regression explanations as “statistically autonomous” explanations that cannot be deepened by adducing details about causal histories, even if the explananda as such are embedded in the causal structure of the world. That regression explanations have statistical (...) autonomy was first suggested by Ian Hacking and has recently been defended and elaborated by André Ariew, Yasha Rohwer, and Collin Rice. However, I will argue that these analyses fail to capture what regression’s statistical autonomy consists in and how it sets regression explanations apart from other kinds of explanation. The alternative account I develop also shows what is amiss with a recent denial of regression’s statistical autonomy. Marc Lange has argued that facts that can be explained as regression phenomena can in principle also be explained by citing a conjunction of causal histories. The account of regression explanation developed here shows that his argument is based on a misunderstanding of the nature of statistical autonomy. (shrink)

. The uniform prior distribution is often seen as a mathematical description of noninformativeness. This paper uses the well-known Three Prisoners Paradox to examine the impossibility of maintaining noninformativeness throughout hierarchization. The Paradox has been solved by Bayesian conditioning over the choice made by the Warder when asked to name a prisoner who will be shot. We generalize the paradox to situations of N prisoners, k executions and m announcements made by the Warder. We then extend the consequences of hierarchically (...) placing uniform and symmetrical priors for the probability p of the Warder naming Prisoner B, say. We prove that breaks of indifference and neutrality caused by assignment of uniform and symmetrical priors in lieu of degenerate indifference probabilities hold in general. Speaking of unknown probabilities or of probability of a probability must be forbidden as meaningless. Bruno de Finetti, 1977 I regard the use of hierarchical chains as a technique helping you to sharpen your subjective probabilities. I. J. Good, 1981. (shrink)

In 1907, German anthropologist Theodor Mollison invented a unique method for racial differentiation, called ‘deviation curves’. By transforming anthropometric data matrices into graphs, Mollison’s method enabled the simultaneous comparison of a large number of physical attributes of individuals and groups. However, the construction of deviation curves had been highly desultory, and their interpretation had been prone to various visual misjudgements. Despite their methodological shortcomings, deviation curves became very popular among racial anthropologists. This positive reception not only stemmed from the method’s (...) utilities, but was related to additional interests of its protagonists which the method helped promote. Deviation curves provided a unique solution to the holistic–atomistic controversy in German anthropology. By giving separate measurements a consolidated visual form, they substantiated the idea that the attributes of certain social groups were part of distinct racial compounds. Deviation curves thus reinforced racial suppositions, in face of severe criticism on the ontological reality of race itself. Finally, deviation curves emphasized the biological singularity of disadvantaged human groups – Jews, Africans and also women – and of their divergence from ideologically defined physical norms. Disciplinary and social interests thus became intertwined in the formation of a scientific method, which is used to this day in physical anthropology. (shrink)

There are two motivations commonly ascribed to historical actors for taking up statistics: to reduce complicated data to a mean value (e.g., Quetelet), and to take account of diversity (e.g., Galton). Different motivations will, it is assumed, lead to different methodological decisions in the practice of the statistical sciences. Karl Pearson and W. F. R. Weldon are generally seen as following directly in Galton’s footsteps. I argue for two related theses in light of this standard interpretation, based on a reading (...) of several sources in which Weldon, independently of Pearson, reflects on his own motivations. First, while Pearson does approach statistics from this "Galtonian" perspective, he is, consistent with his positivist philosophy of science, utilizing statistics to simplify the highly variable data of biology. Weldon, on the other hand, is brought to statistics by a rich empiricism and a desire to preserve the diversity of biological data. Secondly, we have here a counterexample to the claim that divergence in motivation will lead to a corresponding separation in methodology. Pearson and Weldon, despite embracing biometry for different reasons, settled on precisely the same set of statistical tools for the investigation of evolution. (shrink)

During the twentieth century statistical methods have transformed research in the experimental and social sciences. Qualitative evidence has largely been replaced by quantitative results and the tools of statistical inference have helped foster a new ideal of objectivity in scientific knowledge. The paper will investigate this transformation by considering the genesis of analysis of variance and experimental design, statistical methods nowadays taught in every elementary course of statistics for the experimental and social sciences. These methods were developed by the mathematician (...) and geneticist R. A. Fisher during the 1920s, while he was working at Rothamsted Experimental Station, where agricultural research was in turn reshaped by Fisher’s methods. Analysis of variance and experimental design required new practices and instruments in field and laboratory research, and imposed a redistribution of expertise among statisticians, experimental scientists and the farm staff. On the other hand the use of statistical methods in agricultural science called for a systematization of information management and made computing an activity integral to the experimental research done at Rothamsted, permanently integrating the statisticians’ tools and expertise into the station research programme. Fisher’s statistical methods did not remain confined within agricultural research and by the end of the 1950s they had come to stay in psychology, sociology, education, chemistry, medicine, engineering, economics, quality control, just to mention a few of the disciplines which adopted them. (shrink)

Gauss’ 1809 discussion of least squares, which can be viewed as the beginning of mathematical statistics, is reviewed. The general consensus seems to be that Gauss’ arguments are at fault, but we show that his reasoning is in fact correct, given his self-imposed restrictions, and persuasive without these restrictions.

The paper discusses the scope and influence of eugenics in defining the scientific programme of statistics and the impact of the evolution of biology on social scientists. It argues that eugenics was instrumental in providing a bridge between sciences, and therefore created both the impulse and the institutions necessary for the birth of modern statistics in its applications first to biology and then to the social sciences. Looking at the question from the point of view of the history of statistics (...) and the social sciences, and mostly concentrating on evidence from the British debates, the paper discusses how these disciplines became emancipated from eugenics precisely because of the inspiration of biology. It also relates how social scientists were fascinated and perplexed by the innovations taking place in statistical theory and practice. (shrink)

The requirement of randomization in experimental design was first stated by R. A. Fisher, statistician and geneticist, in 1925 in his book Statistical Methods for Research Workers. Earlier designs were systematic and involved the judgment of the experimenter; this led to possible bias and inaccurate interpretation of the data. Fisher's dictum was that randomization eliminates bias and permits a valid test of significance. Randomization in experimenting had been used by Charles Sanders Peirce in 1885 but the practice was not continued. (...) Fisher developed his concepts of randomizing as he considered the mathematics of small samples, in discussions with "Student," William Sealy Gosset. Fisher published extensively. His principles of experimental design were spread worldwide by the many "voluntary workers" who came from other institutions to Rothamsted Agricultural Station in England to learn Fisher's methods. (shrink)

This paper deals with some formal properties of objects that are supposed to be internal to persons, that is, mental structures and mental functions. Depending on the ways of talking about these internal objects, they will appear different. Two types of discourse will be presented, to be called the realist and the nominalist discourses, and for eachdiscourse I will focus upon the construction of `self'.The realist discourse assumes an identity between the person and his construction of himself. I will illustrate (...) this discourse in terms of Descartes' ideas on himself as a `thinking substance'. The nominalist discourse assumes an impossibility to attain this identity, and instead to imply a complementarity between the person and his self-construction. I will illustrate this discourse in terms of the problems both William James and Sartre discerned when a conscious person chases after his own consciousness (termed `judging thought' and `pour-soi' respectively). (shrink)

Peter Ludlow presents the first book on the philosophy of generative linguistics, including both Chomsky's government and binding theory and his minimalist ...

My dissertation explores the ways in which Rudolf Carnap sought to make philosophy scientific by further developing recent interpretive efforts to explain Carnap’s mature philosophical work as a form of engineering. It does this by looking in detail at his philosophical practice in his most sustained mature project, his work on pure and applied inductive logic. I, first, specify the sort of engineering Carnap is engaged in as involving an engineering design problem and then draw out the complications of design (...) problems from current work in history of engineering and technology studies. I then model Carnap’s practice based on those lessons and uncover ways in which Carnap’s technical work in inductive logic takes some of these lessons on board. This shows ways in which Carnap’s philosophical project subtly changes right through his late work on induction, providing an important corrective to interpretations that ignore the work on inductive logic. Specifically, I show that paying attention to the historical details of Carnap’s attempt to apply his work in inductive logic to decision theory and theoretical statistics in the 1950s and 1960s helps us understand how Carnap develops and rearticulates the philosophical point of the practical/theoretical distinction in his late work, offering thus a new interpretation of Carnap’s technical work within the broader context of philosophy of science and analytical philosophy in general. (shrink)

Bayesian confirmation theory—abbreviated to in these notes—is the predominant approach to confirmation in late twentieth century philosophy of science. It has many critics, but no rival theory can claim anything like the same following. The popularity of the Bayesian approach is due to its flexibility, its apparently effortless handling of various technical problems, the existence of various a priori arguments for its validity, and its injection of subjective and contextual elements into the process of confirmation in just the places where (...) critics of earlier approaches had come to think that subjectivity and sensitivity to context were necessary. (shrink)

Decoupling is a general principle that allows us to separate simple components in a complex system. In statistics, decoupling is often expressed as independence, no association, or zero covariance relations. These relations are sharp statistical hypotheses, that can be tested using the FBST - Full Bayesian Significance Test. Decoupling relations can also be introduced by some techniques of Design of Statistical Experiments, DSEs, like randomization. This article discusses the concepts of decoupling, randomization and sparsely connected statistical models in the epistemological (...) framework of cognitive constructivism. (shrink)

Abstract : A measurement result is never absolutely accurate: it is affected by an unknown “measurement error” which characterizes the discrepancy between the obtained value and the “true value” of the quantity intended to be measured. As a consequence, to be acceptable a measurement result cannot take the form of a unique numerical value, but has to be accompanied by an indication of its “measurement uncertainty”, which enunciates a state of doubt. What, though, is the value of measurement uncertainty? What (...) is its numerical value: how does one calculate it? What is its epistemic value: how one should interpret a measurement result? Firstly, we describe the statistical models that scientists make use of in contemporary metrology to perform an uncertainty analysis, and we show that the issue of the interpretation of probabilities is vigorously debated. This debate brings out epistemological issues about the nature and function of physical measurements, metrologists insisting in particular on the subjective aspect of measurement. Secondly, we examine the philosophical elaboration of metrologists in their technical works, where they criticize the use of the notion of “true value” of a physical quantity. We then challenge this elaboration and defend such a notion. The third part turns to a specific use of measurement uncertainty in order to address our thematic from the perspective of precision physics, considering the activity of the adjustments of physical constants. In the course of this activity, physicists have developed a dynamic conception of the accuracy of their measurement results, oriented towards a future progress of knowledge, and underlining the epistemic virtues of a never-ending process of identification and correction of measurement errors. (shrink)