3 Comments
User's avatar
tailcalled's avatar

One notion of variance explained I like:

Suppose X is a cause of Y that explains r^2 of the variance in Y. If you have someone who is z standard deviations about average in Y, then in expectation r^2 z of that is due to being above average in X. That is, the variance explained tells you how much of the Y is explained by the X.

The trouble is that people are mixing up two different questions: explanation and intervention. If you want to intervene on Y with some variable X, then it doesn't matter how well X explains the preexisting variance in Y. It just matters how big the effect of X is. But conversely, if someone wants to explain Y, then it doesn't matter how big the interventions are that it supports, it only matters how much variance it explains. It just so happens that there is a simple quadratic relationship between the effect size and the explanation validity (in the linear-Gaussian case).

Expand full comment
User's avatar
Comment deleted
Mar 20, 2023
Comment deleted
Expand full comment
Cremieux's avatar

Classic.

Expand full comment
Alden Whitfeld's avatar

Taleb is coping on Twitter about this: https://x.com/nntaleb/status/1653072081154715651?s=20

Expand full comment