Reference Class Problem

tags
Statistics

Applying statistics to the real world is troubled by the problem of how to select reference classes. Wikipedia:

For example, to estimate the probability of an aircraft crashing, we could refer to the frequency of crashes among various different sets of aircraft: all aircraft, this make of aircraft, aircraft flown by this company in the last ten years, etc. In this example, the aircraft for which we wish to calculate the probability of a crash is a member of many different classes, in which the frequency of crashes differs. It is not obvious which class we should refer to for this aircraft. In general, any case is a member of very many classes among which the frequency of the attribute of interest differs. The reference class problem discusses which class is the most appropriate to use.