Comments on: State of Florida Rejects RMS Cat Model Approach http://cstpr.colorado.edu/prometheus/?p=4206 Wed, 29 Jul 2009 22:36:51 -0600 http://wordpress.org/?v=2.9.1 hourly 1 By: Harry Haymuss http://cstpr.colorado.edu/prometheus/?p=4206&cpage=1#comment-9032 Harry Haymuss Tue, 15 May 2007 09:21:28 +0000 http://sciencepolicy.colorado.edu/prometheusreborn/?p=4206#comment-9032 Dewitt - quite true. See: http://www.aon.com/about/publications/pdf/issues/atlantic_basin_frequency_shift.pdf - especially Appendix A and the first figures in Appendix B. Dewitt – quite true. See:
http://www.aon.com/about/publications/pdf/issues/atlantic_basin_frequency_shift.pdf

- especially Appendix A and the first figures in Appendix B.

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By: DeWitt Payne http://cstpr.colorado.edu/prometheus/?p=4206&cpage=1#comment-9031 DeWitt Payne Mon, 14 May 2007 21:45:53 +0000 http://sciencepolicy.colorado.edu/prometheusreborn/?p=4206#comment-9031 I made a Poisson cusum control chart of all North Atlantic hurricanes from 1979 to 2006 (here: http://i165.photobucket.com/albums/u43/gplracerx/HurricaneCusum1979-2006.jpg ) that shows an apparent regime shift in 1995 from an average of about 6 hurricanes/year (lambda for the chart) to greater than 8 (defining the Upper Control Limit). The result appears to be significant at better than 99% confidence level. However, the increase in total activity may not correlate with an increase in landfalling hurricanes. Still, it does indicate that current activity has increased. I made a Poisson cusum control chart of all North Atlantic hurricanes from 1979 to 2006 (here: http://i165.photobucket.com/albums/u43/gplracerx/HurricaneCusum1979-2006.jpg ) that shows an apparent regime shift in 1995 from an average of about 6 hurricanes/year (lambda for the chart) to greater than 8 (defining the Upper Control Limit). The result appears to be significant at better than 99% confidence level. However, the increase in total activity may not correlate with an increase in landfalling hurricanes. Still, it does indicate that current activity has increased.

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By: Rich Horton http://cstpr.colorado.edu/prometheus/?p=4206&cpage=1#comment-9030 Rich Horton Sat, 12 May 2007 21:43:07 +0000 http://sciencepolicy.colorado.edu/prometheusreborn/?p=4206#comment-9030 Roger, What you say is probably true, but I tend to doubt we could really show anything without a few thousand years more data we do not have. Variability I buy. Variability that points to decade(s) long "trends", not so much. To my mind, the best we can say right now is that things are "suggestive." For example, if someone wants to claim that the present amount of activity in the Atlantic is suggestive of the more active years of the 1930's, I'd go along wih that. At least that keeps speculation in the "maybe it is, maybe it isn't" arena. The truth is, even if there are decade(s) long patterns that might be discernable via our statistical methods how could we be sure we have seen everything the Atlantic could throw at us in the last 150 years? We can't. We might be entering a "pattern" that was last seen not in the 1930's but maybe the 930's. I don't mind preparing for worst case scenarios, and historically speaking, we know a WCS for Florida could mean 20 storms in 5 years. Now, we may actually get only 3, but so what. The WCS won't change, so that should be something that Florida should be prepared long term for. Roger,

What you say is probably true, but I tend to doubt we could really show anything without a few thousand years more data we do not have.

Variability I buy. Variability that points to decade(s) long “trends”, not so much.

To my mind, the best we can say right now is that things are “suggestive.” For example, if someone wants to claim that the present amount of activity in the Atlantic is suggestive of the more active years of the 1930’s, I’d go along wih that. At least that keeps speculation in the “maybe it is, maybe it isn’t” arena. The truth is, even if there are decade(s) long patterns that might be discernable via our statistical methods how could we be sure we have seen everything the Atlantic could throw at us in the last 150 years? We can’t. We might be entering a “pattern” that was last seen not in the 1930’s but maybe the 930’s.

I don’t mind preparing for worst case scenarios, and historically speaking, we know a WCS for Florida could mean 20 storms in 5 years. Now, we may actually get only 3, but so what. The WCS won’t change, so that should be something that Florida should be prepared long term for.

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By: Roger Pielke, Jr. http://cstpr.colorado.edu/prometheus/?p=4206&cpage=1#comment-9029 Roger Pielke, Jr. Sat, 12 May 2007 14:01:14 +0000 http://sciencepolicy.colorado.edu/prometheusreborn/?p=4206#comment-9029 Rich- The question is not whether the current period is higher than any period in the past, but whether it is more active than the long-term average. If there is significant variability on long time periods then the long-term average will leave you underestimating (or overestimating) risk in any particular period. The important question is whether the risk management strategies based on a long-term average are not robust in a particular period. Thanks! Rich- The question is not whether the current period is higher than any period in the past, but whether it is more active than the long-term average. If there is significant variability on long time periods then the long-term average will leave you underestimating (or overestimating) risk in any particular period. The important question is whether the risk management strategies based on a long-term average are not robust in a particular period.

Thanks!

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By: Mark Bahner http://cstpr.colorado.edu/prometheus/?p=4206&cpage=1#comment-9028 Mark Bahner Sat, 12 May 2007 13:54:48 +0000 http://sciencepolicy.colorado.edu/prometheusreborn/?p=4206#comment-9028 I've just received "Useless Arithmetic" and am on the first chapter, about the collapse of cod in the Grand Banks. This seems like a similar situation. And a similar situation exists on climate change. Specifically, there aren't any incentives to make accurate predictions. The insurance and re-insurance industries have incentives to overpredict future hurricane damages. The State of Florida and insurance purchasers have incentive to underpredict future hurricane damages. It seems to me the solution is similar in all these cases: reward accuracy, rather than rewarding inaccuracy. Two ways that this could be done would be to set up a futures market or a prediction prize fund. Here's how the prediction prize fund might work: 1) Beginning in 2012 (5 years from now) the State of Florida could award prizes totaling $400,000 each year, for the most accurate predictions of insured losses in Florida over the previous 5 years. 2) A group of 30 experts would be chosen in 2007. They'd make their predictions for total insured losses each year and total losses for the next 5 years. 3) In 2012, the expert who was closest to the 5-year total would get $200,000. Second place would get $100,000. Third and fourth would get $25,000. And each person who was closest for the 5 individual years would get $10,000. So that's $400,000, total. 3) In 2013, the same prizes would be awarded for predictions made in 2008. 4) The 15 experts with the worst predictions over the previous 5 years would be dropped from the expert pool, and replaced by 15 people who'd made accurate predictions, but weren't part of the expert pool. (That is, people could submit predictions in order to get put into the pool of experts. If they made accurate predictions, they'd replace the losers in the existing pool of experts.) Such a prize fund would be more likely to produce accurate predictions, because it would reward accuracy, rather than (perversely) rewarding inaccuracy, as the present system does. Such a system would be even better for predicting climate change, where it's obvious that the "experts" are quite blatantly lying: http://markbahner.typepad.com/random_thoughts/2007/01/a_method_for_ac.html P.S. The IPCC Fourth Assessment Report "projections" were/are indeed pseudoscientific nonsense, just as I expected in my blog post. It's simply illogical and unscientific to set up a system that rewards inaccurate predictions (e.g., the IPCC Assessment Reports) and expect it to produce accurate predictions. I’ve just received “Useless Arithmetic” and am on the first chapter, about the collapse of cod in the Grand Banks.

This seems like a similar situation. And a similar situation exists on climate change. Specifically, there aren’t any incentives to make accurate predictions.

The insurance and re-insurance industries have incentives to overpredict future hurricane damages. The State of Florida and insurance purchasers have incentive to underpredict future hurricane damages.

It seems to me the solution is similar in all these cases: reward accuracy, rather than rewarding inaccuracy. Two ways that this could be done would be to set up a futures market or a prediction prize fund.

Here’s how the prediction prize fund might work:

1) Beginning in 2012 (5 years from now) the State of Florida could award prizes totaling $400,000 each year, for the most accurate predictions of insured losses in Florida over the previous 5 years.

2) A group of 30 experts would be chosen in 2007. They’d make their predictions for total insured losses each year and total losses for the next 5 years.

3) In 2012, the expert who was closest to the 5-year total would get $200,000. Second place would get $100,000. Third and fourth would get $25,000. And each person who was closest for the 5 individual years would get $10,000. So that’s $400,000, total.

3) In 2013, the same prizes would be awarded for predictions made in 2008.

4) The 15 experts with the worst predictions over the previous 5 years would be dropped from the expert pool, and replaced by 15 people who’d made accurate predictions, but weren’t part of the expert pool. (That is, people could submit predictions in order to get put into the pool of experts. If they made accurate predictions, they’d replace the losers in the existing pool of experts.)

Such a prize fund would be more likely to produce accurate predictions, because it would reward accuracy, rather than (perversely) rewarding inaccuracy, as the present system does.

Such a system would be even better for predicting climate change, where it’s obvious that the “experts” are quite blatantly lying:

http://markbahner.typepad.com/random_thoughts/2007/01/a_method_for_ac.html

P.S. The IPCC Fourth Assessment Report “projections” were/are indeed pseudoscientific nonsense, just as I expected in my blog post. It’s simply illogical and unscientific to set up a system that rewards inaccurate predictions (e.g., the IPCC Assessment Reports) and expect it to produce accurate predictions.

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By: Rich Horton http://cstpr.colorado.edu/prometheus/?p=4206&cpage=1#comment-9027 Rich Horton Fri, 11 May 2007 22:05:30 +0000 http://sciencepolicy.colorado.edu/prometheusreborn/?p=4206#comment-9027 Just to follow up on what I said earlier: From 1906-1910, 12 storms hit Florida. From 1910-1914, 4 storms hit Florida. From 1933-1937, 16 storms hit Florida. From 1938-1942, 5 storms hit Florida. From 2002-2006, 14 storms hit Florida. From 2007-2011, ?? Are we not allowed to learn from past experience? Just to follow up on what I said earlier:

From 1906-1910, 12 storms hit Florida.
From 1910-1914, 4 storms hit Florida.

From 1933-1937, 16 storms hit Florida.
From 1938-1942, 5 storms hit Florida.

From 2002-2006, 14 storms hit Florida.
From 2007-2011, ??

Are we not allowed to learn from past experience?

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By: kevin v http://cstpr.colorado.edu/prometheus/?p=4206&cpage=1#comment-9026 kevin v Fri, 11 May 2007 21:48:32 +0000 http://sciencepolicy.colorado.edu/prometheusreborn/?p=4206#comment-9026 and of course, this did not help in terms of the "scientifically robust and politically legitimate tools" picture: http://www.tbo.com/news/nationworld/MGBDIZS9H1F.html where, essentially, the state of Florida paid for a model effort to say what they wanted it to say, then had to scramble when it didn't say what they wanted it to say and of course, this did not help in terms of the “scientifically robust and politically legitimate tools” picture:

http://www.tbo.com/news/nationworld/MGBDIZS9H1F.html

where, essentially, the state of Florida paid for a model effort to say what they wanted it to say, then had to scramble when it didn’t say what they wanted it to say

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By: Rich Horton http://cstpr.colorado.edu/prometheus/?p=4206&cpage=1#comment-9025 Rich Horton Fri, 11 May 2007 21:32:51 +0000 http://sciencepolicy.colorado.edu/prometheusreborn/?p=4206#comment-9025 I don't know. When I looked at 100 years worth of storm landfalls in Florida I found a remarkable consistancy over time. From 1907-1966 there was an average of 14.67 storms a decade making landfall in Florida. From 1967-2006 there was an average of 14.50 a decade. I found similar numbers for Texas, Louisiana and North Carolina landfalls as well. Using RMS methodology I could have cherry picked any active five year period from the early part of the 20th century and claimed that that should have signaled "increased risk for the future." But, of course, that would have been dead wrong. In light of Vecchi and Soden's paper doesn't it seem likely that RMS is also dead wrong? I don’t know. When I looked at 100 years worth of storm landfalls in Florida I found a remarkable consistancy over time. From 1907-1966 there was an average of 14.67 storms a decade making landfall in Florida. From 1967-2006 there was an average of 14.50 a decade. I found similar numbers for Texas, Louisiana and North Carolina landfalls as well. Using RMS methodology I could have cherry picked any active five year period from the early part of the 20th century and claimed that that should have signaled “increased risk for the future.” But, of course, that would have been dead wrong.

In light of Vecchi and Soden’s paper doesn’t it seem likely that RMS is also dead wrong?

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