In game B you choose random number between 0 and 1, and you win if the random number will be more tha[n] your confidence interval (0,9, for example).
I don’t quite understand that. What does it mean for a number to be larger than a confidence interval, and which confidence interval for what, anyway? Can you (or someone who understands it) explain game B and why preferring it means you’re overconfident in a bit more detail?
Thank you for your notice, there were not very clear description, I have edited it. Here is description for the both games:
In game A you will receive a money prize if your statement is true, in other words if the correct number is between your upper and lower bounds.
In game B you generate random number between 0 and 1, and you win if the random is between zero and your credence (0.9, for example). I can say that you win with probability equals to your credence.
If you prefer game A, you may be underconfident; if you prefer game B, you may be overconfident.
If you are overconfident, you may have 90% credence for some interval, but after repeated tests of your estimation the value you estimated will fall into your interval only in 80% or 70% or 60% of tests. So you will likely choose game B, because it has a higher chance of a payoff.
If you are underconfident, you will likely assign 70% credence, but after tests you will get 90% or 80% hit ratio. In this case you will likely choose game A, for the same reason.
I don’t quite understand that. What does it mean for a number to be larger than a confidence interval, and which confidence interval for what, anyway? Can you (or someone who understands it) explain game B and why preferring it means you’re overconfident in a bit more detail?
Thank you for your notice, there were not very clear description, I have edited it. Here is description for the both games:
If you are overconfident, you may have 90% credence for some interval, but after repeated tests of your estimation the value you estimated will fall into your interval only in 80% or 70% or 60% of tests. So you will likely choose game B, because it has a higher chance of a payoff.
If you are underconfident, you will likely assign 70% credence, but after tests you will get 90% or 80% hit ratio. In this case you will likely choose game A, for the same reason.
Have I answered your question?
Yes, now I understand it. Thank you!