The gamblers fallacy, also known as the Monte Carlo fallacy or the - TopicsExpress



          

The gamblers fallacy, also known as the Monte Carlo fallacy or the fallacy of the maturity of chances, is the mistaken belief that if something happens more frequently than normal during some period, then it will happen less frequently in the future, or that if something happens less frequently than normal during some period, then it will happen more frequently in the future (presumably as a means of balancing nature). In situations where what is being observed is truly random (i.e. independent trials of a random process), this belief, though appealing to the human mind, is false. This fallacy can arise in many practical situations although it is most strongly associated with gambling where such mistakes are common among players. The use of the term Monte Carlo fallacy originates from the most famous example of this phenomenon, which occurred in a Monte Carlo Casino in 1913.
Posted on: Thu, 07 Aug 2014 01:16:31 +0000

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