"We have purposely avoided directly confronting the issue of masks because it is such an emotional and political issue. Like waving a red flag in front of a bull, the topic elicits strong emotions which overwhelms

1/

Get a cup of coffee.

In this thread, I'll help you understand the basics of Binomial Thinking.

The future is always uncertain. There are many different ways it can unfold -- some more likely than others. Binomial thinking helps us embrace this view.

2/

The S&P 500 index is at ~3768 today.

Suppose we want to predict where it will be 10 years from now.

Historically, we know that this index has returned ~10% per year.

If we simply extrapolate this, we get an estimate of ~9773 for the index 10 years from now:

3/

What we just did is called a "point estimate" -- a prediction about the future that's a single number (9773).

But of course, we know the future is uncertain. It's impossible to predict it so precisely.

So, there's a sense of *false precision* in point estimates like this.

4/

To emphasize the uncertainty inherent in such predictions, a better approach is to predict a *range* of values rather than a single number.

For example, we may say the index will return somewhere in the *range* of 8% to 12% (instead of a fixed 10%) per year.

5/

10 years from now, this implies an index value in the *range* [8135, 11703]:

In a number of Sunday papers:
Scientific advisers said it was “hard to see” when the restrictions would end as new variants continued to emerge, delivering a potentially devastating blow to the travel industry. The prime minister said that after progress with vaccinations...

...”what we don’t want to see is all that work undone by the arrival of a new variant that is vaccine-busting”.
The idea is planted in people’s mind that this virus is mutating in such a way as to evade prior immunity. This is completely unfounded, certainly as regards immunity..

...gained naturally, after repelling the virus (which well around 99.9% of the population do, fewer, obviously in the very elderly & already ill, more in those younger & well). It’s important to appreciate that upon infection, the human immune system cuts up an infectious...

...agent into short pieces. Each of these short pieces of protein are presented to other cells in the immune system, like an identity parade. Our cells have a truly astonishing range of abilities to recognise different protein structures, and there will be some which recognise...

...each of the pieces of the invader. The cells which recognise a piece are instructed to multiply selectively so that, after a few days to a couple of weeks, our bodies contain large numbers of virus piece specific cells. These have a range of functions. Some make antibodies...