One other thing which both this and PG's original theory get wrong: Their basic premise is wrong, if bias continues to exist after the selection event in question. For example, if YC had (hypothetically) a real bias against black or women entrepreneurs, it is almost certain that future funding rounds, as well as all possible exit scenarios, would exhibit very much of the same bias. In which case, the future "performa…
The Mathematics of Paul Graham's Bias Test
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Re: The Mathematics of Paul Graham's Bias Test
#12> The idea is generally correct - bias in a decision process will be visible in post-decision distributions I find what's wrong with the idea more fundamental, that it talks only about the 'selection process' but in fact bias that impacts success or failure can come at other points.
Re: The Mathematics of Paul Graham's Bias Test
#13"But Uber skews the results!" So what? You don't get to just throw out data points you don't like without good reason.
If your "test" is that sensitive to individual outliers, then perhaps it isn't really a good test after all.
Re: The Mathematics of Paul Graham's Bias Test
#14One other thing which both this and PG's original theory get wrong: Their basic premise is wrong, if bias continues to exist after the selection event in question. For example, if YC had (hypothetically) a real bias against black or women entrepreneurs, it is almost certain that future funding rounds, as well as all possible exit scenarios, would exhibit very much of the same bias. In which case, the future "performa…
However, the test may still useful to help confirm bias. If outperformance is observed, you can infer one of 3 things is true:
1) there is bias at initial selection but not after (or at least reduced bias)
2) members of the outperforming group are simply stronger performers (different but still interesting)
3) there is no bias at selection but there are affirmative action effects after the initial selection (not obvious why this would be the case)
Re: The Mathematics of Paul Graham's Bias Test
#15One other thing which both this and PG's original theory get wrong: Their basic premise is wrong, if bias continues to exist after the selection event in question. For example, if YC had (hypothetically) a real bias against black or women entrepreneurs, it is almost certain that future funding rounds, as well as all possible exit scenarios, would exhibit very much of the same bias. In which case, the future "performa…
It does mean that maybe monetary earnings or anything else sensitive to later-round bias are not the thing to use to measure candidate performance, at least if you're doing this for the social utility.
Of course, if you're only in it to make money, and you're only in charge of the first round... then you really do want just an unbiased evaluation of the (biased) future earnings prospects. So in that case using raw earnings would be correct...
Re: The Mathematics of Paul Graham's Bias Test
#16> The idea is generally correct - bias in a decision process will be visible in post-decision distributions I find what's wrong with the idea more fundamental, that it talks only about the 'selection process' but in fact bias that impacts success or failure can come at other points.
This is really important. Lets say the whole VC ecosystem is biased against redheads (just to pick a random group). What would happen is the redheads would under perform other groups as they were discriminated against at each stage of the VC lifecycle. They would not show up as a group that over performing later. The only bias you can detect using Paul’s approach is bias that only applies at the initial stage and not…
Actually, choosing an identifiable group at random would be both socially and statistically unwise, as, following Patero distribution, there are vastly more minority/extreme minority distinguishable groups of people than there are majority/significant minority ones; this means, firstly, that any group randomly selected with equal biasing between all groups has a high probability of being subject to actual discrimination, mooting any social benefit of choosing a group at random; secondly, that the generalizable qualities of the group chosen would therefore have a distribution with very little deviation (if I'm using my terms correctly) and would be highly predictable, thereby obviating any possible statistical benefit of doing so.
Re: The Mathematics of Paul Graham's Bias Test
#17Lots of math in here premised on shaky foundations: >Group A comes from a population where the chance of graduation is distributed uniformly from 0% to 100% and group B is from one where the chance is distributed uniformly from 10% to 90% >The mean of group B is not lower because of bias (which would be reflected near x=80), but because the very best members of group B are simply not as good as the very best members…
Read it again. He's talking about the counterexample there. It's a hypothetical.
Re: The Mathematics of Paul Graham's Bias Test
#18Lots of math in here premised on shaky foundations: >Group A comes from a population where the chance of graduation is distributed uniformly from 0% to 100% and group B is from one where the chance is distributed uniformly from 10% to 90% >The mean of group B is not lower because of bias (which would be reflected near x=80), but because the very best members of group B are simply not as good as the very best members…
Read it again. He's talking about the counterexample there. It's a hypothetical.
Re: The Mathematics of Paul Graham's Bias Test
#19Lots of math in here premised on shaky foundations: >Group A comes from a population where the chance of graduation is distributed uniformly from 0% to 100% and group B is from one where the chance is distributed uniformly from 10% to 90% >The mean of group B is not lower because of bias (which would be reflected near x=80), but because the very best members of group B are simply not as good as the very best members…
Read it again. He's talking about the counterexample there. It's a hypothetical.
>Unfortunately, using the mean as a test statistic is flawed - it only works when the pre-selection distribution of A and B is identical, at least beyond C
His argument is based the proposition that different sexes/races have different market value profiles. He needs to demonstrate why that is the case before proceeding to heavy math.
Re: The Mathematics of Paul Graham's Bias Test
#20> The idea is generally correct - bias in a decision process will be visible in post-decision distributions I find what's wrong with the idea more fundamental, that it talks only about the 'selection process' but in fact bias that impacts success or failure can come at other points.
This is really important. Lets say the whole VC ecosystem is biased against redheads (just to pick a random group). What would happen is the redheads would under perform other groups as they were discriminated against at each stage of the VC lifecycle. They would not show up as a group that over performing later. The only bias you can detect using Paul’s approach is bias that only applies at the initial stage and not…