A few glaring issues here:
1) Does the question imply causation or not? It shouldn’t.
2) Are these stats intended to be realistic such that I need to consider potential flaws and take a holistic view or just a toy scenario to test my numerical skills? If I believe it’s the former and I’m confident X and Y are positively correlated, a 2x2 grid showing X and Y negatively correlated should of course make me question the quality of your data proportionally.
3) Is this an adversarial question such that my response may be taken out of context or otherwise misused?
The sample interviews from Veritasium did not seem to address any of these issues:
(1) They seemed to cut out the gun question, but the skin cream question implied causation, “Did the skin cream make the rash better or worse?”
(2) One person mentioned “I Wouldn’t have expected that...” which implies he thought it was real data,
(3) the last person clearly interpreted it adversarially.
In the original study, the question was stated as “cities that enacted a ban on carrying concealed handguns were more likely to have a decrease in crime.” This framing is not as bad, but still too close to implying causation in my opinion.
I agree with you that people like him do a service to prediction markets: contributing a huge amount of either liquidity or information. I don’t agree with you that it is clear which one he is providing, especially considering the outcome. He did also win his popular vote bet, which was hovering around, I’m not sure, ~20% most of the time?
I think he (Theo) probably did have a true probability around 80% as well. That’s what it looks like at least. I’m not sure why you would assume he should be more conservative than Kelly. I’m sure Musk is not, as one example of a competent risk-taker.