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(gentle instrumental music)
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- All our lives, we are
pulled about and pushed around
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by the mysterious workings of chance.
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When chance seems cruel,
some call it fate.
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And when chance is kind,
we might call it luck.
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Scoring a big win,
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being saved from disaster,
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or meeting that special someone.
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But what actually is chance?
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Is it something fundamental
in the fabric of the universe?
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Does chance have rules?
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And does it really exist at all?
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And if it does, could we
one day even overcome it?
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This is the story of how we
discovered how chance works,
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learnt to tame it,
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and even to work out
the odds for the future.
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How we tried, but so often
failed, to conquer it,
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and may finally be learning to love it.
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(lively instrumental music)
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Chance plays its part in all our lives,
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though mine perhaps more than most.
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I'm a mathematician at
Cambridge University
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and trying to make sense
of chance is my job.
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I study how we can use
the mathematics of chance
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to calculate probabilities,
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numbers that can give us a handle
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on what might happen in the future.
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(splashing)
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(applauding)
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(gasping)
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Did you know that, on average,
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each person in Britain has a
one-in-a-million daily chance
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of some kind of violent
or accidental death?
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To put it in perspective, one in a million
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is roughly the chance of
flipping heads 20 times.
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Imagine it like this.
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Flip a coin, 20 heads, you're dead.
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Heads.
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Heads.
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Oh, dear.
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Heads.
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Tails.
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Oh, phew.
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It's easy to say that it's 50/50
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for a coin to come up heads,
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but we can even put a
probability on things
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that seem utterly chaotic
and unpredictable.
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San Francisco.
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In October 1989, a huge,
magnitude 7 earthquake
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struck totally without warning.
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Many people died.
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Today, San Francisco
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is its usual laid-back and beautiful self.
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But the people here know another disaster
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could hit at any moment.
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- I know that my family members,
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we all have the earthquake kits
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and we try to have things ready,
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but, other than that,
we're not very fazed by it,
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I don't think.
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Not until the big one comes.
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- I believe in being prepared
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but I also believe that it is fate.
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- I've been here for over 20 years
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and it kind of puts you in a place
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where you live a bit more in the moment,
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where you know as much as you prepare,
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something could hit at any time.
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- [David] For millennia, we've
met the uncertainties of life
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with just a fateful
shrug of the shoulders.
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But mathematics can help us quantify fate,
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even if we can't banish it.
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- What we now know from
our studies is that
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the likelihood of a major
earthquake hitting the Bay area
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is something like 63%
over the next 30 years.
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But, associated with this 63% number,
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which sounds very precise,
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there's actually a huge
range of uncertainty.
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It could be mid-40%
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or it could be 80%.
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- [David] Probabilities are often as much
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a matter of judgment as arithmetic.
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But they can still really
help people decide what to do.
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- After the 1989 earthquake,
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there were a lot of aftershocks
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and a woman called me and she said,
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"I'm so nervous to be here."
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"I think I want to drive to Los Angeles
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"to visit my daughter."
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And I said, "I don't
think that's a good idea,"
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and she said, "Why?"
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I said, "Well, the likelihood
that you'll be injured
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"in an automobile accident is much higher
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"than the likelihood that an
aftershock will harm you."
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- There's no escaping chance.
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But if we can understand how it works,
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then perhaps we can even
turn it to our advantage.
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This was what the first
mathematicians to investigate it
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hoped to do.
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To, as it were, tame chance.
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The scholars of the ancient world,
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the Egyptians, Babylonians,
Greeks and others,
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laid down the foundations for geometry,
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algebra, number theory, and so much more.
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But extraordinarily, they
never even got started
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on the maths of chance.
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It wasn't until the Renaissance
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that a few pioneering thinkers
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first got to grips with probability.
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But unlike the ancients,
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they weren't loftily pursuing
knowledge for its own sake.
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They were trying to crack
the secrets of gambling.
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The first was Gerolamo Cardano,
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from the Italian city of Milan.
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Cardano was a doctor.
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But he was also an
obsessive life-long gambler.
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This was written in the 1570s,
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the earliest known work on probability.
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In it, Cardano set out
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a seasoned gambler's tips and insights,
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including how to cheat,
and in one chapter,
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laid out the most fundamental
principle of probability.
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Cardano realized a probability
was also a fraction.
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So with the roll of a dice,
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the probability for each
side coming up was one sixth.
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And it gets more
interesting with two dice.
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With two dice, and 36
possible combinations,
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there's only one way to throw a two.
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00:07:02,260 --> 00:07:04,433
But you're much more
likely to get a seven.
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Cardano's insight works
with games like dice
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because we can assume
that each of the faces
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is equally likely.
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Provided, as Cardano puts it in his book,
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"the dice are honest."
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This may seem simple to us now
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but it was the very first step
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in working out how to tame chance.
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(playful instrumental music)
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Las Vegas, a place Cardano
would have surely loved.
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The people who run this city
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have the measure of chance so well,
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they've built an entire
glittering industry out of it.
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It's vital, even so, that
anyone here can get lucky.
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You could even bet one
dollar and win a million.
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Mike Shackleford is a
professional gambler.
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His living depends on his
command of casino maths.
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- I analyze every casino game out there
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and my goal is to find out the probability
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of every possible event in every game.
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Almost always, the odds are going to be
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in the casino's favor.
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For example, in roulette,
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the house advantage is
5.26% under American rules.
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That means that for every
dollar the player bets,
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on average he can expect
to lose 5.26 cents.
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- [David] Not only do the casinos
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understand the probabilities perfectly,
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they also know that most
of the punters don't.
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And these games can really
mess with our minds.
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- You'll see a series of
outcomes from a slot machine
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and believe that there's a
pattern to what you've just seen
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but that's really just the human brain
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playing a trick on you
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because what's happened in the
past has no predictive value
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for what is going to happen next.
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Yes, the machine may have
had this series of payouts
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in the past.
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It may have been hot or cold.
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But that has no bearing or no influence
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on what is going to
happen on that next game.
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So you could hit the jackpot symbol
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two games in a row.
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- We just hit the biggest
jackpot we've ever hit here.
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8,600 dollars.
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We just went to this machine
about half an hour ago,
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so we got lucky.
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- [David] Jackpots
don't worry the casinos.
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They know the slots are programmed
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to deliver high house
edges in the long run.
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Smart players, like
Mike, rarely touch them.
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- A professional gambler plays games
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where the odds are in their favor.
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Probably the most well known
is card-counting in Blackjack.
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- [David] In Blackjack,
every time a card is dealt,
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the odds change for all
the cards that are left.
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Mike tracks the cards that are dealt,
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to work out how those odds are changing.
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- So if the player notices that
in the first 25% of the shoe
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a lot of small cards came
out, more than expected,
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he knows that the remaining cards
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are going to have a surplus of big cards.
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So he will adjust his bet size
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and he will change how he plays
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and by doing that, he can
get the odds in his favor.
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- On a good day, Mike can get
a 1% advantage over the house.
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It doesn't sound much
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but it could mean a lot of money.
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The casinos, of course,
don't like card counters
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and Mike's been banned from
almost every joint in town.
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In the world of games,
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if you know the rules, you can
figure out the probabilities.
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But what about the chances
of life and death itself?
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(laughing evilly)
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(bell tolling)
(eerie music)
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To be able to put
probabilities on our own lives
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needed another great mathematical leap.
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And this time, the rewards
would be even bigger.
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For most of history, it was almost a given
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that we had not the slightest inkling
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of when our time on earth was up.
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Death visited when he wanted
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and the results were never pretty.
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Thank goodness for the
consolation of eternal life
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in the hereafter.
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The sculptors who carved
this terrifying monument
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were capturing the brutal
truth of our mortality
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as a warning to everyone
here, quaking in the pews.
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But around the time this was
carved, about 300 years ago,
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scientists began trying to work out
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00:12:30,150 --> 00:12:33,770
the mathematical chances,
for each individual,
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that Death would soon
be paying them a call.
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The revelation was that you
could study one group of people,
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the residents of this
parish, for instance,
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and see how old they were when they died.
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From this, you could
estimate the chances of death
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at each age for everybody else too.
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This was a radical idea.
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Count the dead
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and Death would become
less of a divine punishment
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and more of a predictable force of nature.
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The man who really cracked
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how to apply the maths
of chance to human lives
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was Edmund Halley, the famous astronomer.
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00:13:15,240 --> 00:13:18,650
Edmund Halley had no interest
in what went on in there.
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What fascinated him was
what had happened out here.
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Most people now remember
him for his famous comet,
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00:13:24,530 --> 00:13:28,030
but I salute him as one of
history's greatest nerds.
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Halley realized that he could calculate
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the probabilities of life and death.
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All he needed was some good data.
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83,
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52,
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27.
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In faraway Breslau, now a city in Poland,
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locals were spooked by
an ancient superstition
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that being aged 49 or 63
was particularly risky.
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To prove the superstition wrong,
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a Breslau clergyman collected details
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of all the town's deaths
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and circulated these to the
leading scientists of the day.
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00:14:12,300 --> 00:14:13,800
Halley got hold of the data
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and realized the results
would have an impact
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00:14:16,110 --> 00:14:17,173
far beyond Breslau.
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- Halley constructed a table
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that was made up of,
essentially, two columns.
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The first column was age
and the second column
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was how many people
were alive at that age.
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00:14:40,940 --> 00:14:44,200
The first column started
at birth with 1,000 people,
259
00:14:44,200 --> 00:14:45,930
and as the ages increased,
260
00:14:45,930 --> 00:14:49,660
what we saw is that the number
of people alive decreased
261
00:14:49,660 --> 00:14:51,403
and this wasn't uniformly.
262
00:14:52,970 --> 00:14:57,463
- [David] Halley found nothing
special about 49 or 63.
263
00:14:58,490 --> 00:15:01,550
But his data showed
that the older you got,
264
00:15:01,550 --> 00:15:03,513
the greater the chance of you dying.
265
00:15:05,430 --> 00:15:07,430
It seems obvious to us now.
266
00:15:07,430 --> 00:15:08,640
But before Halley,
267
00:15:08,640 --> 00:15:11,460
people thought the chances
much the same for everyone,
268
00:15:11,460 --> 00:15:12,803
young and old alike.
269
00:15:14,890 --> 00:15:18,743
And Halley's table had an
immediate practical benefit.
270
00:15:19,840 --> 00:15:21,730
- Halley's tables were
also ground-breaking
271
00:15:21,730 --> 00:15:23,530
because not only did he publish
272
00:15:23,530 --> 00:15:25,530
the probability of death at a certain age,
273
00:15:25,530 --> 00:15:27,260
he took that one step further
274
00:15:27,260 --> 00:15:29,730
and applied that to the price of a pension
275
00:15:29,730 --> 00:15:31,890
or the price of life assurance.
276
00:15:31,890 --> 00:15:35,000
He included formulae as to
how you could actually come up
277
00:15:35,000 --> 00:15:36,883
with a price for a pension.
278
00:15:39,460 --> 00:15:42,730
- People in the 17th century
wanted to buy pensions
279
00:15:42,730 --> 00:15:45,283
and life insurance,
just like they do today.
280
00:15:46,400 --> 00:15:49,110
But before Halley,
anybody who provided them
281
00:15:49,110 --> 00:15:51,143
was in danger of going bankrupt.
282
00:15:52,330 --> 00:15:54,800
So Halley's breakthrough
would form the foundation
283
00:15:54,800 --> 00:15:57,810
for the entire pensions and
life insurance industry.
284
00:15:57,810 --> 00:15:59,180
And death would never seem
285
00:15:59,180 --> 00:16:01,513
as capricious and mysterious again.
286
00:16:04,500 --> 00:16:06,253
And what of Edmund Halley?
287
00:16:07,970 --> 00:16:11,883
He lived all the way to
86, off his own table.
288
00:16:12,810 --> 00:16:14,903
Costly if you were his pension provider.
289
00:16:20,670 --> 00:16:24,570
Today, the insurance and
pensions industry is huge,
290
00:16:24,570 --> 00:16:26,520
and has collected so much data
291
00:16:26,520 --> 00:16:29,180
they can correlate your
life and death chances
292
00:16:29,180 --> 00:16:31,860
to your gender, your address,
293
00:16:31,860 --> 00:16:34,090
your job and your lifestyle.
294
00:16:34,090 --> 00:16:36,683
And knowledge of the
odds could help us all.
295
00:16:40,440 --> 00:16:43,340
So what do we know about
what affects our chances,
296
00:16:43,340 --> 00:16:45,520
for better or for worse?
297
00:16:45,520 --> 00:16:49,393
Imagine this 100 meters is
100 years of possible life.
298
00:16:50,320 --> 00:16:53,400
How many of those years are
we actually going to see?
299
00:16:53,400 --> 00:16:56,293
How far along this track
are we going to get?
300
00:16:59,590 --> 00:17:02,300
When I was born, the average British male
301
00:17:02,300 --> 00:17:05,233
expected a much shorter
life than if born today.
302
00:17:07,120 --> 00:17:09,910
I was born in the 1950s and back then,
303
00:17:09,910 --> 00:17:13,423
my expected lifespan was just 67 years.
304
00:17:14,450 --> 00:17:16,200
But thanks to medical advances
305
00:17:16,200 --> 00:17:18,250
and changes to the way we live and work,
306
00:17:18,250 --> 00:17:21,170
our chances are
continually getting better.
307
00:17:21,170 --> 00:17:22,720
The average lifespan
308
00:17:22,720 --> 00:17:25,513
is actually rising by three months a year.
309
00:17:26,500 --> 00:17:30,183
If I were born today, I
could expect to live to 78.
310
00:17:32,250 --> 00:17:34,087
Even better, the longer you live,
311
00:17:34,087 --> 00:17:36,020
the longer you can expect to live,
312
00:17:36,020 --> 00:17:38,820
because you've been lucky
enough not to die young.
313
00:17:38,820 --> 00:17:40,390
So at my age now,
314
00:17:40,390 --> 00:17:44,643
I can expect to live not
to 67, or 78, but 82.
315
00:17:52,170 --> 00:17:53,750
But what's not so cheerful
316
00:17:53,750 --> 00:17:56,140
is the effect of all
those things I might do
317
00:17:56,140 --> 00:17:57,330
throughout my life
318
00:17:57,330 --> 00:18:00,053
that could stop me getting
this far, or even further.
319
00:18:00,950 --> 00:18:03,430
Research tells us that for every day
320
00:18:03,430 --> 00:18:06,720
you're five kilos overweight, like I am,
321
00:18:06,720 --> 00:18:10,053
you can expect to lose
half an hour off your life.
322
00:18:14,831 --> 00:18:15,840
Aah.
323
00:18:15,840 --> 00:18:19,830
Sad to say, if you're a man
sinking three pints a day
324
00:18:19,830 --> 00:18:21,393
then that's also half an hour.
325
00:18:23,050 --> 00:18:24,590
But what about exercise?
326
00:18:24,590 --> 00:18:26,540
Won't that make things better?
327
00:18:26,540 --> 00:18:27,680
Yes, it will.
328
00:18:27,680 --> 00:18:29,430
But there's a catch.
329
00:18:29,430 --> 00:18:31,460
A regular run of half an hour
330
00:18:31,460 --> 00:18:33,660
and you can expect to live longer.
331
00:18:33,660 --> 00:18:35,500
Half an hour longer.
332
00:18:35,500 --> 00:18:37,320
So I hope you actually like running.
333
00:18:37,320 --> 00:18:40,273
'Cause that's how you just
spent your extra half hour.
334
00:18:41,860 --> 00:18:46,640
Surprise, surprise, the worst
news is for all you smokers.
335
00:18:46,640 --> 00:18:48,593
Two cigarettes costs half an hour.
336
00:18:49,570 --> 00:18:52,083
But the average smoker's
on nearly 20 a day.
337
00:18:52,920 --> 00:18:54,073
And it all adds up.
338
00:18:56,710 --> 00:18:59,683
Doing something that
costs half an hour a day.
339
00:19:00,900 --> 00:19:04,620
Well, that's more than
a week off each year
340
00:19:04,620 --> 00:19:08,083
and, in the long run, that's
a whole year off your life.
341
00:19:09,350 --> 00:19:11,270
For that 20-a-day smoker,
342
00:19:11,270 --> 00:19:14,313
that's a staggering 10 years
you should expect to lose.
343
00:19:16,950 --> 00:19:19,080
All these figures tell us a lot.
344
00:19:19,080 --> 00:19:20,900
But as for chance itself,
345
00:19:20,900 --> 00:19:22,943
that's certainly not disappeared.
346
00:19:24,370 --> 00:19:27,080
When I say I can expect to live to 82,
347
00:19:27,080 --> 00:19:29,170
I'm not actually making a prediction.
348
00:19:29,170 --> 00:19:32,340
It may be shorter or, with
luck, it may be longer.
349
00:19:32,340 --> 00:19:34,260
82 is the average.
350
00:19:34,260 --> 00:19:38,743
Imagine 100 possible future
mes, each equally likely.
351
00:19:41,420 --> 00:19:44,890
I'm 58 now and as the years roll by,
352
00:19:44,890 --> 00:19:47,963
in more and more of these
possible futures, I die,
353
00:19:49,210 --> 00:19:51,860
until by the age of 82
354
00:19:51,860 --> 00:19:55,000
about half of my future
selves will be dead
355
00:19:55,000 --> 00:19:56,773
and about half still alive.
356
00:19:57,900 --> 00:19:59,410
Which is going to be me?
357
00:19:59,410 --> 00:20:00,913
That's just chance.
358
00:20:02,240 --> 00:20:05,691
Beyond 82, more and more drop dead.
359
00:20:05,691 --> 00:20:07,730
And there's a very small chance
360
00:20:07,730 --> 00:20:10,263
I could live to be very old indeed.
361
00:20:12,830 --> 00:20:16,853
If I were a smoker, it's just
possible I'd beat the odds.
362
00:20:19,340 --> 00:20:22,673
But overall, my chances
wouldn't look nearly so good.
363
00:20:26,460 --> 00:20:30,230
Of course, many people would
say going on about risks
364
00:20:30,230 --> 00:20:32,063
is being a big killjoy.
365
00:20:33,070 --> 00:20:35,987
The writer Kingsley Amis famously said,
366
00:20:35,987 --> 00:20:38,037
"No pleasure is worth giving up
367
00:20:38,037 --> 00:20:39,547
"for the sake of two more years
368
00:20:39,547 --> 00:20:42,647
"in a geriatric home
at Weston-super-Mare."
369
00:20:43,890 --> 00:20:46,250
But I believe understanding the risks
370
00:20:46,250 --> 00:20:49,713
might actually help us to
have more fun, not less.
371
00:20:51,020 --> 00:20:52,967
- Okay, just put one arm
through there for me,
372
00:20:52,967 --> 00:20:56,211
the other through there and turn around.
373
00:20:56,211 --> 00:20:57,053
Thank you.
374
00:20:57,053 --> 00:20:59,353
What we'll do is we'll
start strapping you in.
375
00:21:00,590 --> 00:21:03,100
- Many of my favorite
experiences would be impossible
376
00:21:03,100 --> 00:21:04,600
without taking some risk,
377
00:21:04,600 --> 00:21:06,820
but I'm about to do something
I've never done before
378
00:21:06,820 --> 00:21:08,370
which really does involve risk.
379
00:21:13,280 --> 00:21:16,310
The best way to compare risky activities
380
00:21:16,310 --> 00:21:18,650
is to use the micromort,
381
00:21:18,650 --> 00:21:20,920
a cheery little unit which represents
382
00:21:20,920 --> 00:21:23,013
a one-in-a-million chance of death.
383
00:21:34,550 --> 00:21:37,150
Skydiving is actually
safer than you might think.
384
00:21:37,150 --> 00:21:39,630
There's only about a
seven-in-a-million chance of dying.
385
00:21:39,630 --> 00:21:41,410
That's seven micromorts.
386
00:21:41,410 --> 00:21:44,343
That's about the same risk
as 40 miles on a motorbike.
387
00:21:45,270 --> 00:21:46,420
But there's still a risk.
388
00:21:46,420 --> 00:21:49,150
And you may think I should
be old enough to know better.
389
00:21:49,150 --> 00:21:50,670
But I think it could be rational
390
00:21:50,670 --> 00:21:52,570
to take more risks when you get older.
391
00:21:55,460 --> 00:21:58,580
An average 18-year-old
has a chance of dying
392
00:21:58,580 --> 00:22:01,913
in the next 12 months
of about 500 micromorts.
393
00:22:04,150 --> 00:22:07,820
But at my age, the equivalent
is 7,000 micromorts.
394
00:22:11,279 --> 00:22:13,929
7,000 micromorts doesn't
sound great, does it?
395
00:22:13,929 --> 00:22:15,500
But my extra risk of skydiving
396
00:22:15,500 --> 00:22:17,764
is only seven micromorts more.
397
00:22:17,764 --> 00:22:20,014
That's not much difference.
398
00:22:21,980 --> 00:22:24,243
So the risk is actually pretty low.
399
00:22:25,500 --> 00:22:26,830
But the funny thing is,
400
00:22:26,830 --> 00:22:29,570
now I'm actually in the plane
and there's no backing out,
401
00:22:29,570 --> 00:22:31,863
it suddenly seems a lot worse.
402
00:22:34,336 --> 00:22:35,921
Will my parachute fail?
403
00:22:35,921 --> 00:22:37,550
I don't know.
404
00:22:37,550 --> 00:22:39,750
Will we be blown into a tree?
405
00:22:39,750 --> 00:22:40,583
I don't know.
406
00:22:42,864 --> 00:22:45,640
Will I be sick with
fright over my jumpsuit?
407
00:22:45,640 --> 00:22:49,300
The probability of that
is getting close to 100%.
408
00:22:53,690 --> 00:22:55,763
It's the moment of truth.
409
00:22:59,532 --> 00:23:00,449
Here we go.
410
00:23:04,450 --> 00:23:07,000
Yes, I'm a Professor of Risk
411
00:23:07,000 --> 00:23:10,460
and I've made a sound decision
rooted in the numbers,
412
00:23:10,460 --> 00:23:12,670
but as I fall, I can't help thinking
413
00:23:12,670 --> 00:23:15,243
there's a chance I'll
die very soon indeed.
414
00:23:20,610 --> 00:23:23,570
- I could buy myself a
pair of silver hairbrushes.
415
00:23:23,570 --> 00:23:24,403
Oh, hello.
416
00:23:24,403 --> 00:23:26,130
I'm having a go at these premium bonds.
417
00:23:26,130 --> 00:23:28,750
They're wonderful things, you can't lose.
418
00:23:28,750 --> 00:23:31,550
Look, there are staggering
prizes each month,
419
00:23:31,550 --> 00:23:33,600
you can get your money
back any time you like,
420
00:23:33,600 --> 00:23:36,540
and, what's more, all your
tickets go back into each draw
421
00:23:36,540 --> 00:23:38,700
whether you've been lucky before or not.
422
00:23:38,700 --> 00:23:40,900
I might win a thousand quid.
423
00:23:40,900 --> 00:23:42,660
I love a bit of a flutter.
424
00:23:42,660 --> 00:23:44,450
Not a word to Bessie about that.
425
00:23:45,410 --> 00:23:48,110
- [David] In 1956, Britain introduced
426
00:23:48,110 --> 00:23:52,120
a brand new kind of savings
scheme, Premium Bonds,
427
00:23:52,120 --> 00:23:54,090
that instead of paying you interest
428
00:23:54,090 --> 00:23:56,913
gave you the chance to win big prizes.
429
00:23:57,950 --> 00:24:01,290
At its heart was something
created by mathematicians,
430
00:24:01,290 --> 00:24:04,293
a world of pure chance, randomness.
431
00:24:06,310 --> 00:24:08,580
This is a world where every element
432
00:24:08,580 --> 00:24:10,690
is disconnected from every other,
433
00:24:10,690 --> 00:24:13,653
that operates beyond our
influence or control.
434
00:24:15,530 --> 00:24:18,300
The Premium Bonds monthly prize draw
435
00:24:18,300 --> 00:24:20,560
needed complete randomness
436
00:24:20,560 --> 00:24:22,973
to make sure it was scrupulously fair.
437
00:24:37,210 --> 00:24:41,300
- There was quite a lot of
human interest in randomness
438
00:24:41,300 --> 00:24:42,700
for the first time,
439
00:24:42,700 --> 00:24:44,697
where people began to think about,
440
00:24:44,697 --> 00:24:47,640
"what are the chances of my winning?"
441
00:24:47,640 --> 00:24:52,640
But what it required was
a source of random numbers
442
00:24:52,810 --> 00:24:55,700
and a special purpose
computer was built for this
443
00:24:55,700 --> 00:24:58,420
and it was one of the very
first special purpose computers.
444
00:24:58,420 --> 00:25:00,300
- We're going to an electronic machine,
445
00:25:00,300 --> 00:25:02,180
if you understand what that is,
446
00:25:02,180 --> 00:25:05,813
but thank goodness its complicated
name is ERNIE for short.
447
00:25:06,900 --> 00:25:08,010
- [David] ERNIE stood for
448
00:25:08,010 --> 00:25:11,280
Electronic Random Number
Indicating Equipment.
449
00:25:11,280 --> 00:25:13,900
Truly random numbers are hard to produce,
450
00:25:13,900 --> 00:25:16,690
and ERNIE got them by
sampling the electrical noise
451
00:25:16,690 --> 00:25:18,780
from a series of vacuum tubes.
452
00:25:18,780 --> 00:25:20,853
It was state-of-the-art engineering.
453
00:25:22,420 --> 00:25:24,530
- Randomness really, in a certain extent,
454
00:25:24,530 --> 00:25:28,890
means unpredictable, but also,
for the purposes of ERNIE,
455
00:25:28,890 --> 00:25:31,890
it needed to be unpredictable and unbiased
456
00:25:31,890 --> 00:25:34,700
and my job as a young mathematician
457
00:25:34,700 --> 00:25:37,180
was to show that it really was unbiased
458
00:25:37,180 --> 00:25:40,030
to any particular Premium Bond number.
459
00:25:40,030 --> 00:25:42,820
This was quite a skilled and lengthy task
460
00:25:42,820 --> 00:25:46,207
to say those weasel words
that mathematicians use,
461
00:25:46,207 --> 00:25:51,197
"We have no reason to suppose
that ERNIE is not random."
462
00:25:58,620 --> 00:26:00,570
- For me, as a mathematician,
463
00:26:00,570 --> 00:26:03,350
complete randomness is fascinating.
464
00:26:03,350 --> 00:26:05,113
It's full of curiosities.
465
00:26:05,980 --> 00:26:09,250
And unexpectedly, it turns
out to have its own rules,
466
00:26:09,250 --> 00:26:10,823
patterns and structure.
467
00:26:14,170 --> 00:26:19,170
This is officially the most
boring book in the world, ever.
468
00:26:19,560 --> 00:26:22,560
It's called One Million Random Digits
469
00:26:22,560 --> 00:26:24,230
and that's literally what it is.
470
00:26:24,230 --> 00:26:27,743
Page after page of random numbers.
471
00:26:30,270 --> 00:26:32,370
Say what you like about this book, though,
472
00:26:32,370 --> 00:26:34,543
at least the plot is unpredictable.
473
00:26:36,200 --> 00:26:40,240
Printed in 1955, these
numbers were produced
474
00:26:40,240 --> 00:26:42,803
by an early computer rather like ERNIE.
475
00:26:43,670 --> 00:26:45,510
And people have used them since
476
00:26:45,510 --> 00:26:48,220
for everything from
randomized clinical trials
477
00:26:48,220 --> 00:26:50,463
to encrypting communications.
478
00:26:52,330 --> 00:26:54,310
I might not read this book cover to cover,
479
00:26:54,310 --> 00:26:57,810
but I promise you there are
some really interesting parts.
480
00:26:57,810 --> 00:26:59,437
I mean, look at this, 00000.
481
00:27:02,440 --> 00:27:04,240
And here's another great bit, 12345.
482
00:27:09,460 --> 00:27:11,270
It seems really strange to see these.
483
00:27:11,270 --> 00:27:13,130
I mean, how can these be random?
484
00:27:13,130 --> 00:27:14,470
But, of course, they're as random
485
00:27:14,470 --> 00:27:15,870
as the numbers next to them.
486
00:27:17,820 --> 00:27:20,700
Not only can you expect to
find patterns like these,
487
00:27:20,700 --> 00:27:23,840
you can even calculate how
often you expect to find them.
488
00:27:23,840 --> 00:27:26,140
A perfect sequence of five numbers.
489
00:27:26,140 --> 00:27:28,910
There should be 50 of these in the book.
490
00:27:28,910 --> 00:27:31,210
And the same number five times in a row,
491
00:27:31,210 --> 00:27:33,570
there should be about 100 of these.
492
00:27:33,570 --> 00:27:34,840
You can even expect,
493
00:27:34,840 --> 00:27:37,920
somewhere in these one
million random numbers,
494
00:27:37,920 --> 00:27:41,430
the same number to occur
seven times in a row.
495
00:27:41,430 --> 00:27:43,580
And I've found it, 6666666.
496
00:27:53,660 --> 00:27:55,910
What makes randomness so useful
497
00:27:55,910 --> 00:27:58,830
is that it is completely unpredictable,
498
00:27:58,830 --> 00:28:00,443
but in a predictable way.
499
00:28:02,580 --> 00:28:05,383
So predictable that it has its own shape.
500
00:28:07,810 --> 00:28:09,873
A lottery is a great example.
501
00:28:11,550 --> 00:28:15,213
Each National Lottery
draw is, well, random.
502
00:28:16,050 --> 00:28:18,530
There seems no pattern at all.
503
00:28:18,530 --> 00:28:21,563
But there are also
seemingly strange results.
504
00:28:23,480 --> 00:28:25,590
Today, after something approaching
505
00:28:25,590 --> 00:28:29,220
2,000 National Lottery
draws over 20 years,
506
00:28:29,220 --> 00:28:30,510
there are huge differences
507
00:28:30,510 --> 00:28:33,700
in how often different
numbers have come up.
508
00:28:33,700 --> 00:28:37,293
Number 38 has been picked 241 times,
509
00:28:38,550 --> 00:28:41,663
while number 20 has come up just 171.
510
00:28:43,330 --> 00:28:45,690
It might look like something's wrong,
511
00:28:45,690 --> 00:28:47,650
but taking all the results together,
512
00:28:47,650 --> 00:28:52,013
the totals match the shape of
randomness remarkably well.
513
00:28:53,730 --> 00:28:55,850
And even the outlying results
514
00:28:55,850 --> 00:28:58,313
are just where the shape
shows they should be.
515
00:29:04,880 --> 00:29:05,910
Here we go.
516
00:29:05,910 --> 00:29:07,193
Let's pick some numbers.
517
00:29:09,370 --> 00:29:11,340
It's not a great bet, I admit.
518
00:29:11,340 --> 00:29:13,750
There's only a one-in-14-million chance
519
00:29:13,750 --> 00:29:15,490
of me winning the jackpot.
520
00:29:15,490 --> 00:29:18,120
In fact, I'm very unlikely
to win anything at all.
521
00:29:18,120 --> 00:29:19,900
There's only a one-in-56 chance
522
00:29:19,900 --> 00:29:23,310
of me getting the smallest
prize of 10 pounds.
523
00:29:23,310 --> 00:29:25,530
Overall, the lottery only pays back
524
00:29:25,530 --> 00:29:28,310
45% of the money it takes in.
525
00:29:28,310 --> 00:29:30,443
Far, far worse than any casino game.
526
00:29:32,060 --> 00:29:33,480
If you must play,
527
00:29:33,480 --> 00:29:36,080
though you can't change
your chances of winning,
528
00:29:36,080 --> 00:29:39,590
you can improve your chances
of not sharing the jackpot.
529
00:29:39,590 --> 00:29:42,600
Many people pick birthdays
or other significant dates,
530
00:29:42,600 --> 00:29:44,780
so avoid the numbers up to 31.
531
00:29:44,780 --> 00:29:46,250
You may even want to steer clear
532
00:29:46,250 --> 00:29:48,933
of that supposedly lucky number, 38.
533
00:29:50,290 --> 00:29:53,650
In the end, it doesn't matter
what numbers you choose,
534
00:29:53,650 --> 00:29:57,000
every combination, say 1, 2, 3, 4, 5, 6,
535
00:29:57,000 --> 00:29:59,230
is as likely as any other.
536
00:29:59,230 --> 00:30:01,130
That's because it's completely random.
537
00:30:07,430 --> 00:30:10,510
But randomness can confuse us.
538
00:30:10,510 --> 00:30:14,490
For example, use the shuffle
feature on the original iPod
539
00:30:14,490 --> 00:30:17,900
to play its tracks in random
order and before too long
540
00:30:17,900 --> 00:30:20,973
you're very likely to land
on the same album again.
541
00:30:22,790 --> 00:30:24,840
People found it so off-putting
542
00:30:24,840 --> 00:30:27,070
that the shuffle on later-generation iPods
543
00:30:27,070 --> 00:30:28,653
was supposedly tweaked.
544
00:30:30,400 --> 00:30:32,457
Apple famously explained,
545
00:30:32,457 --> 00:30:36,027
"We're making it less random
so it feels more random."
546
00:30:42,490 --> 00:30:44,610
Patterns and connections like this
547
00:30:44,610 --> 00:30:46,870
are what we call coincidences.
548
00:30:46,870 --> 00:30:48,900
And no matter how much
we should expect them,
549
00:30:48,900 --> 00:30:51,553
they nonetheless still
make our heads spin.
550
00:30:54,250 --> 00:30:56,660
I love coincidences so much
551
00:30:56,660 --> 00:30:59,320
I decided to try to collect them.
552
00:30:59,320 --> 00:31:01,973
Luckily, it's an interest
the nation shares.
553
00:31:03,244 --> 00:31:04,881
Let's talk about coincidences now,
554
00:31:04,881 --> 00:31:07,051
at 7:24, why do they happen?
555
00:31:07,051 --> 00:31:08,899
- Professor David
Spiegelhalter, good morning.
556
00:31:08,899 --> 00:31:09,746
- Good morning.
- You are an expert
557
00:31:09,746 --> 00:31:12,150
in risk and chance, is what I'm reading,
558
00:31:12,150 --> 00:31:13,070
at Cambridge University,
559
00:31:13,070 --> 00:31:15,940
but why is it you're interested
in chance and coincidence?
560
00:31:15,940 --> 00:31:16,980
- Well, it's part of my job.
561
00:31:16,980 --> 00:31:19,250
I'm Professor of the Public
Understanding of Risk,
562
00:31:19,250 --> 00:31:20,780
so everything to do with chance,
563
00:31:20,780 --> 00:31:23,880
uncertainty and coincidences
is what I'm interested in.
564
00:31:23,880 --> 00:31:25,720
And we've set up this website
565
00:31:25,720 --> 00:31:27,610
where we're collecting coincidence stories
566
00:31:27,610 --> 00:31:29,110
which people are sending in,
567
00:31:29,110 --> 00:31:31,570
and the sort of things where people,
568
00:31:31,570 --> 00:31:33,251
when they happen to them, they say,
569
00:31:33,251 --> 00:31:34,590
"Ooh, what are the chances of that?"
570
00:31:34,590 --> 00:31:35,820
And we're trying to work out
571
00:31:35,820 --> 00:31:38,500
what the chances of that really are.
572
00:31:38,500 --> 00:31:40,930
It's like a family having three children
573
00:31:40,930 --> 00:31:43,100
all with the same birthday,
born in different years,
574
00:31:43,100 --> 00:31:45,100
but all three children
being born on the same,
575
00:31:45,100 --> 00:31:46,210
having the same birthday.
576
00:31:46,210 --> 00:31:47,820
You'd think, "Wow, what's
the chances of that?"
577
00:31:47,820 --> 00:31:48,653
Well, we can work those out.
578
00:31:48,653 --> 00:31:50,940
And it turns out, because
there's a million families
579
00:31:50,940 --> 00:31:52,520
in this country with three children,
580
00:31:52,520 --> 00:31:55,210
we'd expect there's about
eight families like that.
581
00:31:55,210 --> 00:31:56,350
Now, we've found three of them.
582
00:31:56,350 --> 00:31:58,687
- People read great significance,
though, into these things.
583
00:31:58,687 --> 00:32:00,600
Are they misguided in doing that?
584
00:32:00,600 --> 00:32:02,270
- Well, it's Friday 13th,
585
00:32:02,270 --> 00:32:03,990
exactly the day that
shows people do believe
586
00:32:03,990 --> 00:32:06,100
in luck and fortune and things like that.
587
00:32:06,100 --> 00:32:08,550
But I suppose I'm being a
bit scientific about them,
588
00:32:08,550 --> 00:32:11,680
so some of them we try to
take apart and do the maths,
589
00:32:11,680 --> 00:32:13,450
but other ones are just amazing.
590
00:32:13,450 --> 00:32:16,320
There's a lovely example last
year where a French family,
591
00:32:16,320 --> 00:32:18,150
their house was hit by a meteorite.
592
00:32:18,150 --> 00:32:19,780
Well, that's pretty surprising itself,
593
00:32:19,780 --> 00:32:21,720
but their name was Comette.
594
00:32:21,720 --> 00:32:23,257
Isn't that just beautiful?
595
00:32:23,257 --> 00:32:24,090
- [Host] "What are the chances
596
00:32:24,090 --> 00:32:25,810
"of never experiencing a coincidence?"
597
00:32:25,810 --> 00:32:26,890
says Steve in Cheshire.
598
00:32:26,890 --> 00:32:28,644
- Oh, very low indeed.
599
00:32:28,644 --> 00:32:31,410
That would be really, really bizarre.
600
00:32:31,410 --> 00:32:32,980
- Good one, Steve.
601
00:32:32,980 --> 00:32:34,200
- 7:29.
602
00:32:34,200 --> 00:32:36,800
What are the chances of any
decent weather over the weekend?
603
00:32:36,800 --> 00:32:37,860
- [Man] Pretty good, actually, Rachel.
604
00:32:37,860 --> 00:32:40,050
We've got some clear skies
out there at the moment,
605
00:32:40,050 --> 00:32:41,130
but because of those clear skies
606
00:32:41,130 --> 00:32:45,370
temperatures are hovering
at or just below freezing.
607
00:32:45,370 --> 00:32:48,380
- The radio show was a huge success.
608
00:32:48,380 --> 00:32:50,180
The stories flooded in.
609
00:32:50,180 --> 00:32:52,680
Over 3,000 of them.
610
00:32:52,680 --> 00:32:56,773
We got lots of coincidences
with numbers, names and words.
611
00:32:57,630 --> 00:32:59,610
And loads of calendar ones,
612
00:32:59,610 --> 00:33:03,520
including one more of those
rare triple birthdays.
613
00:33:03,520 --> 00:33:06,640
Some of these stories are really amazing.
614
00:33:06,640 --> 00:33:08,640
Lots of them are about
running into friends
615
00:33:08,640 --> 00:33:11,290
and acquaintances in the
most unlikely places.
616
00:33:11,290 --> 00:33:13,350
And I love this one.
617
00:33:13,350 --> 00:33:16,680
Mick Preston was on a cycling
holiday in the Pyrenees
618
00:33:16,680 --> 00:33:18,110
and during one stop-over,
619
00:33:18,110 --> 00:33:20,620
he wrote his friend, Alan, a postcard.
620
00:33:20,620 --> 00:33:24,560
But, incredibly, on the way to
post it, he bumped into Alan,
621
00:33:24,560 --> 00:33:27,440
who just by chance was on
holiday in the same place,
622
00:33:27,440 --> 00:33:29,623
so Mick gave him the postcard in person.
623
00:33:30,580 --> 00:33:34,543
As Mick himself said, that
was a waste of a good stamp.
624
00:33:38,970 --> 00:33:40,360
What's striking is that
625
00:33:40,360 --> 00:33:42,810
although these and other coincidences
626
00:33:42,810 --> 00:33:46,800
happened a long time ago,
people were so jolted by them
627
00:33:46,800 --> 00:33:49,023
they still remember them years later.
628
00:33:49,910 --> 00:33:52,460
I think our brains are hard-wired
629
00:33:52,460 --> 00:33:54,330
to look for cause and effect,
630
00:33:54,330 --> 00:33:57,500
to try to come up with
reasons why things happen.
631
00:33:57,500 --> 00:34:00,800
So when things happen for
no apparent reason at all,
632
00:34:00,800 --> 00:34:03,200
we find it really spooky.
633
00:34:03,200 --> 00:34:05,530
We just don't seem to easily accept
634
00:34:05,530 --> 00:34:08,890
that we might not be able
to understand or control
635
00:34:08,890 --> 00:34:10,293
what happens in our lives.
636
00:34:14,980 --> 00:34:19,000
Random events that have no
explanation beyond chance
637
00:34:19,000 --> 00:34:20,793
saturate our lives,
638
00:34:22,670 --> 00:34:23,780
but some people think
639
00:34:23,780 --> 00:34:27,460
they can eliminate the
random, control everything,
640
00:34:27,460 --> 00:34:30,010
and that chance has nothing
to do with them at all.
641
00:34:31,730 --> 00:34:34,550
Ed Smith was once said
to be the golden boy
642
00:34:34,550 --> 00:34:35,760
of English cricket.
643
00:34:35,760 --> 00:34:38,270
For years he held an idea about chance,
644
00:34:38,270 --> 00:34:40,590
or, as he called it, luck, that he shared
645
00:34:40,590 --> 00:34:43,503
with many of his fellow
sporting professionals.
646
00:34:56,600 --> 00:34:59,040
- When I turned full-time
professional in 1999,
647
00:34:59,040 --> 00:35:00,030
we had all these meetings
648
00:35:00,030 --> 00:35:03,010
about how we were going
to approach the season
649
00:35:03,010 --> 00:35:05,777
and someone put his hand up and said,
650
00:35:05,777 --> 00:35:07,447
"I don't think we should
say, bad luck, to each other.
651
00:35:07,447 --> 00:35:08,280
"That's an excuse.
652
00:35:08,280 --> 00:35:09,113
"It's not bad luck.
653
00:35:09,113 --> 00:35:10,520
"If someone gets out, it's their fault."
654
00:35:10,520 --> 00:35:12,870
I think as sportsmen
we're conditioned to think
655
00:35:13,969 --> 00:35:16,050
that you are in total control.
656
00:35:16,050 --> 00:35:19,057
I mean, if you walk out to
bat in professional cricket
657
00:35:19,057 --> 00:35:20,987
and you say, "Well, maybe I'll
be lucky and maybe I won't,
658
00:35:20,987 --> 00:35:23,147
"and maybe someone will bowl
a good ball and I'll be out,
659
00:35:23,147 --> 00:35:24,630
"and I can't do anything about it,"
660
00:35:24,630 --> 00:35:27,230
then you're stacking the
deck against yourself
661
00:35:27,230 --> 00:35:28,363
before you even begin.
662
00:35:31,250 --> 00:35:32,690
- [David] Ed played for England
663
00:35:32,690 --> 00:35:34,713
and became captain of Middlesex.
664
00:35:36,430 --> 00:35:38,410
Everything went well for him,
665
00:35:38,410 --> 00:35:41,973
until one day during a county
cricket match at Lord's.
666
00:35:43,790 --> 00:35:45,740
- So, we're in the middle of
this match, it's going well,
667
00:35:45,740 --> 00:35:47,710
we're pretty much cantering to victory.
668
00:35:47,710 --> 00:35:50,160
We're on a bit of a streak
of five, six wins in a row,
669
00:35:50,160 --> 00:35:51,350
everything's going well
670
00:35:51,350 --> 00:35:53,630
and I'm doing the most
routine thing in cricket,
671
00:35:53,630 --> 00:35:54,600
I'm running a two.
672
00:35:54,600 --> 00:35:55,800
It happens all the time, you know,
673
00:35:55,800 --> 00:35:58,660
it's not particularly
demanding, athletically,
674
00:35:58,660 --> 00:36:00,980
to run 20 yards and then come back again.
675
00:36:00,980 --> 00:36:05,270
And I ran the first one and
then you just rub the bat in,
676
00:36:05,270 --> 00:36:07,020
and I just, sort of, collapsed.
677
00:36:07,020 --> 00:36:08,297
And I'm lying in this,
678
00:36:08,297 --> 00:36:10,470
and have this shooting pain in my ankle,
679
00:36:10,470 --> 00:36:13,640
and it was only quite a few weeks later
680
00:36:13,640 --> 00:36:14,730
that there was an X-ray,
681
00:36:14,730 --> 00:36:17,980
and it turned out that
I'd broken my ankle,
682
00:36:17,980 --> 00:36:20,670
and I wasn't going to play any time soon.
683
00:36:20,670 --> 00:36:22,260
I missed the rest of that season
684
00:36:22,260 --> 00:36:24,040
and then I retired, effectively,
685
00:36:24,040 --> 00:36:25,100
at the end of that season
686
00:36:25,100 --> 00:36:27,250
and didn't play
professional cricket again.
687
00:36:28,170 --> 00:36:32,420
- [David] In a single moment,
Ed's entire career vanished.
688
00:36:32,420 --> 00:36:34,890
He had been touched by chance.
689
00:36:34,890 --> 00:36:36,993
No one and nothing was to blame.
690
00:36:38,230 --> 00:36:40,880
- I think I found it hard to accept.
691
00:36:40,880 --> 00:36:43,810
You know, my own willpower,
my determination to control,
692
00:36:43,810 --> 00:36:46,730
to shape my own life, was so great
693
00:36:46,730 --> 00:36:50,220
but the reality is that
I wasn't in control.
694
00:36:50,220 --> 00:36:52,890
The fact that I had a broken
ankle was just a fact.
695
00:36:52,890 --> 00:36:55,190
It was a circumstance
that had happened to me.
696
00:36:56,070 --> 00:36:58,420
So, it was like a clash between, er,
697
00:36:58,420 --> 00:37:00,130
my own desire to control everything
698
00:37:00,130 --> 00:37:02,803
and the fact of luck,
and, you know, luck won.
699
00:37:05,440 --> 00:37:08,190
- The moral of Ed's story is clear.
700
00:37:08,190 --> 00:37:11,300
Don't beat yourself up
about every failure.
701
00:37:11,300 --> 00:37:13,340
But the opposite is also true.
702
00:37:13,340 --> 00:37:16,363
Don't be too chuffed with
yourself about every success.
703
00:37:19,790 --> 00:37:20,933
Remember this?
704
00:37:21,770 --> 00:37:23,870
I know you can't get rid of luck,
705
00:37:23,870 --> 00:37:25,723
but right now I wish you could.
706
00:37:28,910 --> 00:37:31,023
The parachute hasn't failed at least.
707
00:37:33,580 --> 00:37:35,830
I don't seem to be being
blown into a forest.
708
00:37:37,000 --> 00:37:38,473
And I haven't even been sick.
709
00:37:42,120 --> 00:37:43,560
That was so cool.
710
00:37:43,560 --> 00:37:44,510
Can we do it again?
711
00:37:48,040 --> 00:37:50,480
You know, the really interesting thing
712
00:37:50,480 --> 00:37:53,580
is that whilst I was
confident I would land safely,
713
00:37:53,580 --> 00:37:55,230
I couldn't be absolutely certain.
714
00:37:56,450 --> 00:37:59,070
The question is, why not?
715
00:37:59,070 --> 00:38:01,123
Why does chance exist?
716
00:38:10,810 --> 00:38:15,250
The story of science, for
centuries, has been a triumph,
717
00:38:15,250 --> 00:38:18,430
unlocking the mathematical
laws behind everything,
718
00:38:18,430 --> 00:38:20,733
from the atom to the universe.
719
00:38:25,150 --> 00:38:28,350
So why is there still room for the random?
720
00:38:28,350 --> 00:38:30,460
For unpredictability?
721
00:38:30,460 --> 00:38:34,073
Why, instead, can't everything
in nature be determined?
722
00:38:35,280 --> 00:38:38,850
In which case, we could get
rid of chance altogether
723
00:38:38,850 --> 00:38:40,463
and I would be out of a job.
724
00:38:47,440 --> 00:38:51,490
In the 1680s Isaac Newton
revolutionized science
725
00:38:51,490 --> 00:38:53,193
with a set of universal laws.
726
00:38:54,450 --> 00:38:58,170
He calculated the orbits
of moons and planets,
727
00:38:58,170 --> 00:39:01,530
even predicted the timings of eclipses
728
00:39:01,530 --> 00:39:05,253
and, of course, explained the
fall of an earthbound apple.
729
00:39:05,253 --> 00:39:07,253
(gasps)
730
00:39:08,540 --> 00:39:10,570
Newton's friend, Edmund Halley,
731
00:39:10,570 --> 00:39:12,443
predicted the returns of comets,
732
00:39:15,550 --> 00:39:19,380
and other scientists eagerly
worked to discover new laws
733
00:39:19,380 --> 00:39:21,163
and make more predictions.
734
00:39:22,410 --> 00:39:24,773
The Enlightenment, it came to be called.
735
00:39:27,430 --> 00:39:31,820
In 1779, the French scientist
Pierre-Simon Laplace
736
00:39:31,820 --> 00:39:33,243
had a bold vision.
737
00:39:34,350 --> 00:39:36,370
If some vast intellect
738
00:39:36,370 --> 00:39:39,380
could not only comprehend
all the laws of nature,
739
00:39:39,380 --> 00:39:41,030
but could also measure everything,
740
00:39:41,030 --> 00:39:43,180
even down to the tiniest atom,
741
00:39:43,180 --> 00:39:45,783
then he might predict
the future precisely.
742
00:39:46,630 --> 00:39:49,513
And uncertainty would simply disappear.
743
00:39:51,263 --> 00:39:53,000
- [Man] Hmm.
744
00:39:53,000 --> 00:39:55,440
- In theory, with the right mathematics,
745
00:39:55,440 --> 00:39:57,400
everything in the physical universe
746
00:39:57,400 --> 00:39:59,100
could be measured and predicted,
747
00:39:59,100 --> 00:40:01,960
just like the movement of
the stars and the planets.
748
00:40:01,960 --> 00:40:04,840
So, for example, if I threw a dice
749
00:40:04,840 --> 00:40:07,213
I could predict exactly how it would land.
750
00:40:10,550 --> 00:40:14,433
This theory is what we call
scientific determinism.
751
00:40:15,280 --> 00:40:19,260
In theory, if we gather the
data and do the calculations,
752
00:40:19,260 --> 00:40:22,270
we should be able to get
rid of chance altogether,
753
00:40:22,270 --> 00:40:26,420
but, in practice, prediction
has proved frustratingly hard.
754
00:40:26,420 --> 00:40:29,220
It's as if there is something
about our physical world
755
00:40:29,220 --> 00:40:31,503
that makes prediction all but impossible.
756
00:40:33,520 --> 00:40:35,780
Despite the promise of the laws of Newton
757
00:40:35,780 --> 00:40:37,630
and all the scientists who followed him,
758
00:40:37,630 --> 00:40:39,470
we remain in the dark.
759
00:40:39,470 --> 00:40:40,333
But why?
760
00:40:42,110 --> 00:40:43,460
In the 20th century,
761
00:40:43,460 --> 00:40:46,770
scientists, like meteorologist Ed Lorenz,
762
00:40:46,770 --> 00:40:50,200
discovered that even tiny
influences could have immense
763
00:40:50,200 --> 00:40:52,343
and unpredictable consequences.
764
00:40:54,610 --> 00:40:58,677
As Lorenz put it, "The flap of
a butterfly's wings in Brazil
765
00:40:58,677 --> 00:41:00,727
"could cause a tornado in Texas."
766
00:41:02,750 --> 00:41:04,317
The theory of determinism
767
00:41:04,317 --> 00:41:07,630
had to acknowledge complexity and chaos.
768
00:41:07,630 --> 00:41:09,920
The laws of physics weren't wrong,
769
00:41:09,920 --> 00:41:12,790
but the real world was
just too complicated
770
00:41:12,790 --> 00:41:14,623
to ever fully comprehend.
771
00:41:16,110 --> 00:41:17,980
Also in the 20th century,
772
00:41:17,980 --> 00:41:20,440
physicists, like Werner Heisenberg,
773
00:41:20,440 --> 00:41:23,410
delving ever deeper into
the nature of matter,
774
00:41:23,410 --> 00:41:26,040
realized there was an absolute limit
775
00:41:26,040 --> 00:41:28,470
to what they could ever know.
776
00:41:28,470 --> 00:41:30,640
In his work on quantum mechanics,
777
00:41:30,640 --> 00:41:34,150
Heisenberg set out the
uncertainty principle.
778
00:41:34,150 --> 00:41:36,800
Essential parts of the subatomic world
779
00:41:36,800 --> 00:41:40,573
could at best only ever be
described as a probability.
780
00:41:44,130 --> 00:41:47,380
The dreams scientists once
had of conquering chance
781
00:41:47,380 --> 00:41:48,950
have been shattered.
782
00:41:48,950 --> 00:41:52,000
Quantum mechanics has
shown us a subatomic world
783
00:41:52,000 --> 00:41:54,570
that is fundamentally uncertain.
784
00:41:54,570 --> 00:41:57,900
Beyond the subatomic, we are
still governed by mechanical
785
00:41:57,900 --> 00:41:59,760
and therefore deterministic laws,
786
00:41:59,760 --> 00:42:03,620
but, paradoxically, the
mathematics of chaos and complexity
787
00:42:03,620 --> 00:42:06,903
means that things are still
ultimately unpredictable.
788
00:42:07,970 --> 00:42:09,273
So what is chance?
789
00:42:10,150 --> 00:42:10,983
Is it real?
790
00:42:10,983 --> 00:42:14,110
Is it something out there in
the fabric of the universe?
791
00:42:14,110 --> 00:42:15,900
Or is chance in here?
792
00:42:15,900 --> 00:42:17,430
Just an excuse?
793
00:42:17,430 --> 00:42:21,490
What Laplace called, "Merely
the measure of our ignorance?"
794
00:42:21,490 --> 00:42:23,180
Or is it a bit of both?
795
00:42:23,180 --> 00:42:26,440
After centuries of discovery,
we are still not much closer
796
00:42:26,440 --> 00:42:28,803
to knowing what chance really is.
797
00:42:31,800 --> 00:42:33,430
One thing is certain.
798
00:42:33,430 --> 00:42:36,040
Chance is here to stay.
799
00:42:36,040 --> 00:42:39,430
What's more, it has
actually been put to work.
800
00:42:39,430 --> 00:42:42,440
Faced with complex and
unpredictable problems,
801
00:42:42,440 --> 00:42:45,760
scientists have found
ways to use chance itself
802
00:42:45,760 --> 00:42:50,093
to convert blind uncertainty
into computable probability.
803
00:42:52,630 --> 00:42:54,960
In the early years of the Cold War,
804
00:42:54,960 --> 00:42:57,390
nuclear physicists at Los Alamos
805
00:42:57,390 --> 00:43:01,240
were working to design a new atomic bomb.
806
00:43:01,240 --> 00:43:04,280
They wanted to predict when
an atomic chain reaction
807
00:43:04,280 --> 00:43:05,880
might go critical,
808
00:43:05,880 --> 00:43:07,960
but the physics was so complex
809
00:43:07,960 --> 00:43:09,540
that at each step in the chain
810
00:43:09,540 --> 00:43:12,940
they were uncertain about
what would happen next.
811
00:43:12,940 --> 00:43:15,883
So they turned to the
mathematics of chance.
812
00:43:18,300 --> 00:43:21,340
For each step, they chose
an outcome at random
813
00:43:21,340 --> 00:43:22,220
and then calculated
814
00:43:22,220 --> 00:43:24,443
what the resulting
chain reaction would do.
815
00:43:25,810 --> 00:43:28,570
Then they randomly chose
a new set of outcomes
816
00:43:28,570 --> 00:43:30,323
and calculated a new result.
817
00:43:33,400 --> 00:43:34,950
They did this repeatedly
818
00:43:34,950 --> 00:43:36,670
until they had hundreds of different,
819
00:43:36,670 --> 00:43:39,520
but equally likely, possible results.
820
00:43:39,520 --> 00:43:42,580
And combining them all gave
the Los Alamos scientists
821
00:43:42,580 --> 00:43:44,710
an extremely accurate probability
822
00:43:44,710 --> 00:43:47,283
for what the chain
reaction would do for real.
823
00:43:48,860 --> 00:43:51,790
They called it the Monte Carlo method,
824
00:43:51,790 --> 00:43:55,263
like rolling a dice over and over again.
825
00:43:58,830 --> 00:44:00,513
And the bomb worked.
826
00:44:10,240 --> 00:44:13,260
Today, that very same Monte Carlo method,
827
00:44:13,260 --> 00:44:15,610
creating arrays of possible futures
828
00:44:15,610 --> 00:44:17,220
to compute probabilities,
829
00:44:17,220 --> 00:44:19,410
is being used to try to solve problems
830
00:44:19,410 --> 00:44:21,210
in many different fields.
831
00:44:21,210 --> 00:44:24,140
And what's most exciting
for me and my fellow Brits
832
00:44:24,140 --> 00:44:25,653
is that this might help to answer
833
00:44:25,653 --> 00:44:27,570
that all-important question:
834
00:44:27,570 --> 00:44:30,113
When I go out, do I take an umbrella?
835
00:44:40,120 --> 00:44:44,020
In the 1920s, the economist
John Maynard Keynes
836
00:44:44,020 --> 00:44:46,363
wrote a famous book about chance.
837
00:44:47,340 --> 00:44:50,900
And for the ultimate metaphor
of impenetrable uncertainty
838
00:44:50,900 --> 00:44:53,403
he chose the British weather.
839
00:44:57,620 --> 00:45:00,647
He wrote, "Is our expectation of rain,
840
00:45:00,647 --> 00:45:04,288
"when we start out for a walk,
always more likely than not,
841
00:45:04,288 --> 00:45:07,947
"or less likely than
not, or as likely as not?
842
00:45:07,947 --> 00:45:10,747
"I am prepared to argue
that on some occasions
843
00:45:10,747 --> 00:45:13,367
"none of these alternatives hold,
844
00:45:13,367 --> 00:45:15,387
"and that it will be an arbitrary matter
845
00:45:15,387 --> 00:45:18,067
"to decide for or against the umbrella."
846
00:45:21,280 --> 00:45:23,530
But we want certainty.
847
00:45:23,530 --> 00:45:26,660
And so we demand it from
our weather forecasters.
848
00:45:26,660 --> 00:45:29,760
And then after wet weekends
and washed-out holidays
849
00:45:29,760 --> 00:45:32,833
we blame the poor old
forecasters for getting it wrong.
850
00:45:34,120 --> 00:45:35,267
- Hello to you.
851
00:45:35,267 --> 00:45:38,230
Well, it was a disappointing
day today in many places
852
00:45:38,230 --> 00:45:40,100
and I'm optimistic it's
going to be a better day
853
00:45:40,100 --> 00:45:41,843
for most of us tomorrow.
854
00:45:42,750 --> 00:45:45,610
- [David] Britain's most
famously wrong weather forecast
855
00:45:45,610 --> 00:45:48,530
was on 15th of October, 1987.
856
00:45:48,530 --> 00:45:49,380
- Good afternoon to you.
857
00:45:49,380 --> 00:45:51,440
Earlier on today, apparently
a woman rang the BBC
858
00:45:51,440 --> 00:45:52,273
and said she heard
859
00:45:52,273 --> 00:45:53,400
that there was a hurricane was on the way.
860
00:45:53,400 --> 00:45:56,670
Well, if you're watching,
don't worry, there isn't.
861
00:45:56,670 --> 00:45:58,230
- [David] But there was.
862
00:45:58,230 --> 00:46:01,400
That night England was
lashed by the strongest winds
863
00:46:01,400 --> 00:46:04,120
for almost 300 years.
864
00:46:04,120 --> 00:46:06,070
- [Reporter] Southern England
suffered the full fury
865
00:46:06,070 --> 00:46:08,040
of the freak hurricane force winds,
866
00:46:08,040 --> 00:46:10,220
in their wake, a trail of devastation,
867
00:46:10,220 --> 00:46:13,240
the worst damage to property
since the Second World War.
868
00:46:13,240 --> 00:46:15,207
Nowhere escaped unscathed.
869
00:46:18,810 --> 00:46:21,800
- [David] Today the most
advanced meteorologists
870
00:46:21,800 --> 00:46:24,783
don't try making predictions
like Michael Fish did.
871
00:46:26,260 --> 00:46:27,380
In Reading at the
872
00:46:27,380 --> 00:46:30,720
European Centre for
Medium-Range Weather Forecasts,
873
00:46:30,720 --> 00:46:33,160
they use a form of Monte Carlo method
874
00:46:33,160 --> 00:46:36,263
to make forecasts using
probabilities instead.
875
00:46:37,120 --> 00:46:38,680
To show why they do this,
876
00:46:38,680 --> 00:46:40,960
they've revisited the same weather data
877
00:46:40,960 --> 00:46:43,593
Michael Fish had in 1987.
878
00:46:54,890 --> 00:46:57,780
- What this shows us is that October '87
879
00:46:57,780 --> 00:46:59,640
was an exceptionally unpredictable
880
00:46:59,640 --> 00:47:04,000
and exceptionally chaotic situation
881
00:47:04,000 --> 00:47:05,980
and so it was always
going to be impossible
882
00:47:05,980 --> 00:47:08,873
to make a precise, deterministic forecast.
883
00:47:10,300 --> 00:47:12,280
- [David] Weather forecasts go wrong
884
00:47:12,280 --> 00:47:14,540
because even small errors at the beginning
885
00:47:14,540 --> 00:47:18,003
can grow into huge differences
after just a few days.
886
00:47:18,920 --> 00:47:21,560
And that's as true for everyday weather
887
00:47:21,560 --> 00:47:23,023
as it is for hurricanes.
888
00:47:24,930 --> 00:47:27,800
To tackle the problem, Tim
Palmer and his colleagues
889
00:47:27,800 --> 00:47:31,180
routinely compute 50 different forecasts,
890
00:47:31,180 --> 00:47:34,170
each with slightly varying starting points
891
00:47:34,170 --> 00:47:35,803
to reflect the uncertainty.
892
00:47:36,700 --> 00:47:38,450
Before returning to the hurricane,
893
00:47:38,450 --> 00:47:40,963
Tim shows us an everyday example.
894
00:47:42,460 --> 00:47:44,950
- So we're looking at
today's weather forecast
895
00:47:44,950 --> 00:47:47,870
pretty much right at the
beginning of the forecast period.
896
00:47:47,870 --> 00:47:51,140
These are all basically giving
the same type of weather.
897
00:47:51,140 --> 00:47:52,660
So a weather forecaster
898
00:47:52,660 --> 00:47:54,150
would look at these pressure maps and say,
899
00:47:54,150 --> 00:47:55,970
okay, there's a northwesterly airstream
900
00:47:55,970 --> 00:47:57,600
coming down over the UK,
901
00:47:57,600 --> 00:48:01,270
it's giving us slightly cool temperatures,
902
00:48:01,270 --> 00:48:03,870
but fundamentally it's exactly the same
903
00:48:03,870 --> 00:48:06,840
no matter which of these 50
forecasts you're looking at.
904
00:48:06,840 --> 00:48:09,080
- [David] Taking the same set of forecasts
905
00:48:09,080 --> 00:48:12,730
to three days in the future,
it's a different story.
906
00:48:12,730 --> 00:48:15,120
- Now there are discernible differences.
907
00:48:15,120 --> 00:48:17,900
For example, member 14
has a stronger wind,
908
00:48:17,900 --> 00:48:20,120
there are tighter
gradients in the pressure
909
00:48:20,120 --> 00:48:22,770
than, say, member 15 and
that's telling us that
910
00:48:22,770 --> 00:48:24,730
although the general direction of the wind
911
00:48:24,730 --> 00:48:27,440
we can be certain about, it's
coming from the northwest,
912
00:48:27,440 --> 00:48:30,110
the strength of the wind we
cannot be so certain about.
913
00:48:30,110 --> 00:48:33,593
So we have to make a prediction
in probabilistic terms.
914
00:48:34,530 --> 00:48:36,310
- [David] To work out the probabilities,
915
00:48:36,310 --> 00:48:39,250
Tim counts how many of
the three-day forecasts
916
00:48:39,250 --> 00:48:41,313
show a particular kind of weather.
917
00:48:42,660 --> 00:48:45,430
- It turns out that in
about 30% of the forecasts
918
00:48:45,430 --> 00:48:48,390
there are gale force winds
over much of England.
919
00:48:48,390 --> 00:48:53,110
Similarly rainfall we find
across much of England about 30%.
920
00:48:53,110 --> 00:48:54,490
What this doesn't mean
921
00:48:54,490 --> 00:48:58,130
is that it's raining for 30% of the day.
922
00:48:58,130 --> 00:49:02,040
What it means is that over
the 50 possible futures,
923
00:49:02,040 --> 00:49:04,453
in 30% of them it is raining.
924
00:49:05,300 --> 00:49:06,470
- [David] So what can Tim see
925
00:49:06,470 --> 00:49:11,310
using the new method with
the 1987 hurricane data?
926
00:49:11,310 --> 00:49:14,100
- There's around a 20 to 30% probability
927
00:49:14,100 --> 00:49:17,830
over parts of southern England
of hurricane force winds.
928
00:49:17,830 --> 00:49:21,220
Now, the probability normally
of hurricane force winds
929
00:49:21,220 --> 00:49:23,440
in southern England is negligibly small,
930
00:49:23,440 --> 00:49:26,420
so even though there's a
divergence of solutions,
931
00:49:26,420 --> 00:49:28,480
there's real information here.
932
00:49:28,480 --> 00:49:30,520
- [David] Adapting the Monte Carlo method
933
00:49:30,520 --> 00:49:34,260
and embracing chance
gives much better results.
934
00:49:34,260 --> 00:49:36,840
But in Britain the
forecasts most of us see
935
00:49:36,840 --> 00:49:39,883
don't give us this kind
of information yet.
936
00:49:40,830 --> 00:49:42,410
- We should now be trying to get
937
00:49:42,410 --> 00:49:45,810
this type of information out
on the daily weather forecast.
938
00:49:45,810 --> 00:49:48,000
And indeed I think it will enhance
939
00:49:48,000 --> 00:49:50,670
the credibility of
meteorologists themselves
940
00:49:50,670 --> 00:49:52,160
to be able to say
941
00:49:52,160 --> 00:49:56,930
not only is weather forecasting
an uncertain science,
942
00:49:56,930 --> 00:49:59,140
but we can actually
quantify the uncertainty
943
00:49:59,140 --> 00:50:00,603
in a very precise way.
944
00:50:12,460 --> 00:50:14,010
- If you were a cynic,
945
00:50:14,010 --> 00:50:16,310
you might think that weather forecasters
946
00:50:16,310 --> 00:50:19,220
who give you probabilities
and not predictions
947
00:50:19,220 --> 00:50:21,570
are just hedging their bets,
948
00:50:21,570 --> 00:50:24,250
ducking out of doing the one
thing they're supposed to
949
00:50:24,250 --> 00:50:27,710
so they can never be accused
of being wrong again.
950
00:50:27,710 --> 00:50:29,470
But I don't agree.
951
00:50:29,470 --> 00:50:33,460
Better a reliable probability
than a wrong prediction.
952
00:50:33,460 --> 00:50:34,920
And knowing the probabilities
953
00:50:34,920 --> 00:50:37,234
we can all make our own decisions.
954
00:50:37,234 --> 00:50:40,151
(thunder rumbling)
955
00:50:41,270 --> 00:50:43,083
Like to bring that umbrella.
956
00:50:53,930 --> 00:50:56,923
Remember that San Francisco probability?
957
00:50:56,923 --> 00:50:59,703
A 40 to 80% chance of an earthquake?
958
00:51:01,280 --> 00:51:05,070
In 1906, the city's worst-ever earthquake
959
00:51:05,070 --> 00:51:06,920
killed 3,000 people
960
00:51:06,920 --> 00:51:09,713
and destroyed almost 30,000 buildings.
961
00:51:12,890 --> 00:51:15,120
Even if a similar
catastrophe in the future
962
00:51:15,120 --> 00:51:18,443
can't be predicted, it
certainly can't be ignored.
963
00:51:20,200 --> 00:51:23,300
So today's scientists are
applying new mathematical methods
964
00:51:23,300 --> 00:51:24,163
to the problem.
965
00:51:25,830 --> 00:51:27,410
They're computing probabilities
966
00:51:27,410 --> 00:51:29,690
literally building by building,
967
00:51:29,690 --> 00:51:32,883
so bold decisions can be
taken about what to do.
968
00:51:40,800 --> 00:51:44,050
In Berkeley, across the
bay from San Francisco,
969
00:51:44,050 --> 00:51:46,920
one major fault runs
right across the pitch
970
00:51:46,920 --> 00:51:49,410
of the California Memorial Stadium,
971
00:51:49,410 --> 00:51:51,763
home of the Golden Bears Football Team.
972
00:51:52,720 --> 00:51:54,550
They're rebuilding the stadium
973
00:51:54,550 --> 00:51:56,973
at a cost of over $200 million.
974
00:51:58,410 --> 00:52:02,310
- The fault starts just to the
west of the south scoreboard,
975
00:52:02,310 --> 00:52:03,710
and you can see in the bowl
976
00:52:04,670 --> 00:52:09,110
there are those double
stair-step curves at two points.
977
00:52:09,110 --> 00:52:12,440
That's where our joints are
for that piece of the stadium.
978
00:52:12,440 --> 00:52:13,800
- Right.
- And it allows
979
00:52:13,800 --> 00:52:16,400
this part of the building
to move independently
980
00:52:16,400 --> 00:52:19,470
in an earthquake from the
two sides of the stadium
981
00:52:19,470 --> 00:52:20,303
on either side of it.
982
00:52:20,303 --> 00:52:21,540
- Right.
- And the base
983
00:52:21,540 --> 00:52:25,460
of the entire part of that
building is on layers of sand
984
00:52:25,460 --> 00:52:28,260
and high density polyethylene plastic.
985
00:52:28,260 --> 00:52:30,130
- That's amazing.
- Which allows
986
00:52:30,130 --> 00:52:31,040
that part of the building
987
00:52:31,040 --> 00:52:33,470
to move a little easier
than it would otherwise,
988
00:52:33,470 --> 00:52:35,960
so when the ground moves
six feet horizontal
989
00:52:35,960 --> 00:52:36,940
and two feet vertical,
990
00:52:36,940 --> 00:52:38,870
it can just go along for the ride
991
00:52:38,870 --> 00:52:40,920
and the rest of the stadium is protected.
992
00:52:43,250 --> 00:52:46,400
- [David] The stadium is just
one part of a massive building
993
00:52:46,400 --> 00:52:49,783
and strengthening program
all round San Francisco Bay.
994
00:52:50,800 --> 00:52:55,470
A colossal $30 billion has
been committed in total.
995
00:52:55,470 --> 00:52:57,160
Will it be enough?
996
00:52:57,160 --> 00:52:58,333
They can only hope so.
997
00:53:00,230 --> 00:53:03,570
- Even if we knew exactly what
earthquake is going to occur,
998
00:53:03,570 --> 00:53:06,830
we may not know exactly how
strong the shaking will be
999
00:53:06,830 --> 00:53:08,630
and how it will vary across the city
1000
00:53:08,630 --> 00:53:10,900
because of different soil types.
1001
00:53:10,900 --> 00:53:13,440
So you set a standard,
1002
00:53:13,440 --> 00:53:15,620
you agree the buildings
will be built to that
1003
00:53:15,620 --> 00:53:18,480
and then you hope that that's good enough.
1004
00:53:18,480 --> 00:53:20,580
You can't actually engineer chance
1005
00:53:20,580 --> 00:53:22,030
out of the system altogether.
1006
00:53:24,310 --> 00:53:26,120
- [David] At least in San Francisco
1007
00:53:26,120 --> 00:53:29,150
they've a good idea of what to expect,
1008
00:53:29,150 --> 00:53:31,143
even if they can't know exactly.
1009
00:53:32,270 --> 00:53:34,440
But there's one last sting in the tail.
1010
00:53:34,440 --> 00:53:36,550
Chance can sometimes
come up with something
1011
00:53:36,550 --> 00:53:38,383
you never even thought of.
1012
00:53:40,020 --> 00:53:43,020
- As we know, there are known knowns,
1013
00:53:43,020 --> 00:53:45,280
there are things we know we know.
1014
00:53:45,280 --> 00:53:47,370
We also know there are known unknowns.
1015
00:53:47,370 --> 00:53:51,110
That is to say we know there
are some things we do not know.
1016
00:53:51,110 --> 00:53:53,560
But there are also unknown unknowns,
1017
00:53:53,560 --> 00:53:55,627
the ones we don't know we don't know.
1018
00:53:55,627 --> 00:53:58,310
And if one looks throughout
the history of our country
1019
00:53:58,310 --> 00:53:59,780
and other free countries,
1020
00:53:59,780 --> 00:54:01,310
it is the latter category
1021
00:54:01,310 --> 00:54:03,060
that tend to be the difficult ones.
1022
00:54:04,310 --> 00:54:06,480
- Donald Rumsfeld may
have just been trying
1023
00:54:06,480 --> 00:54:09,720
to excuse an unfolding disaster in Iraq.
1024
00:54:09,720 --> 00:54:13,440
But unknown unknowns are a
real and profound challenge
1025
00:54:13,440 --> 00:54:14,273
for us all.
1026
00:54:15,530 --> 00:54:17,233
And don't we just know it.
1027
00:54:23,240 --> 00:54:26,520
The Bank of England is
the rock-solid institution
1028
00:54:26,520 --> 00:54:29,663
to which we all turn in
these turbulent times.
1029
00:54:31,140 --> 00:54:33,653
Surely I can find some certainty here?
1030
00:54:38,570 --> 00:54:40,493
I'm meeting Spencer Dale.
1031
00:54:51,960 --> 00:54:54,230
The Bank of England is the
main financial institution
1032
00:54:54,230 --> 00:54:55,063
in the country.
1033
00:54:55,063 --> 00:54:56,330
People look to it to tell them
1034
00:54:56,330 --> 00:54:57,833
what's going on in the economy,
1035
00:54:57,833 --> 00:54:59,850
but can you predict
what's going to happen?
1036
00:54:59,850 --> 00:55:01,190
- Unfortunately not.
1037
00:55:01,190 --> 00:55:04,360
Forecasting the economy is a
very difficult thing to do,
1038
00:55:04,360 --> 00:55:08,822
in part because the economy
is very large and complex
1039
00:55:08,822 --> 00:55:11,130
and it's made even more difficult
1040
00:55:11,130 --> 00:55:15,190
because it depends on
people and their decisions
1041
00:55:15,190 --> 00:55:17,700
and that makes trying to model behavior
1042
00:55:17,700 --> 00:55:20,060
and how the economy is
going to change over time
1043
00:55:20,060 --> 00:55:21,283
even more difficult.
1044
00:55:23,670 --> 00:55:26,230
- [David] Every quarter,
the Bank makes a forecast
1045
00:55:26,230 --> 00:55:29,770
for the nation in the form
of what it calls a fan chart.
1046
00:55:29,770 --> 00:55:32,413
And it deliberately builds in uncertainty.
1047
00:55:33,970 --> 00:55:37,270
The chart shows that Britain's
future economic growth
1048
00:55:37,270 --> 00:55:39,170
might have a 5% chance
1049
00:55:39,170 --> 00:55:41,823
of lying in each one of the shaded bands.
1050
00:55:43,130 --> 00:55:46,440
This was the Bank's chart from 2007,
1051
00:55:46,440 --> 00:55:48,583
just before the big crash.
1052
00:55:49,560 --> 00:55:51,120
- At the time we made this forecast,
1053
00:55:51,120 --> 00:55:53,180
we thought in three years' time
1054
00:55:53,180 --> 00:55:55,460
the annual growth of the
economy may be anywhere
1055
00:55:55,460 --> 00:55:58,603
between 5% or close to zero.
1056
00:55:59,570 --> 00:56:02,370
- [David] But the Bank is
even less certain than that.
1057
00:56:02,370 --> 00:56:05,920
It also leaves room for
the unknown unknowns.
1058
00:56:05,920 --> 00:56:08,320
- This only shows 90% of probability.
1059
00:56:08,320 --> 00:56:10,640
So it's shows you 90 times out of 100
1060
00:56:10,640 --> 00:56:13,950
we think the economy will
go somewhere in this range.
1061
00:56:13,950 --> 00:56:16,970
- So there's a one-in-10 chance
it could just do anything?
1062
00:56:16,970 --> 00:56:18,020
- There's a one-in-10 chance
1063
00:56:18,020 --> 00:56:20,730
it will fall outside of this fan chart.
1064
00:56:20,730 --> 00:56:23,420
We don't try and put precise probabilities
1065
00:56:23,420 --> 00:56:25,164
on those very extreme outcomes.
1066
00:56:25,164 --> 00:56:26,331
- Right, okay.
1067
00:56:27,680 --> 00:56:31,660
With these charts, the Bank
is making one thing clear.
1068
00:56:31,660 --> 00:56:34,173
We must expect the unexpected.
1069
00:56:35,090 --> 00:56:38,883
And soon after the Bank made
this chart, chance struck.
1070
00:56:40,750 --> 00:56:42,610
- It was a genuinely surprising event,
1071
00:56:42,610 --> 00:56:43,860
the economy to behave in a way
1072
00:56:43,860 --> 00:56:48,610
which we hadn't seen for
almost an entire generation.
1073
00:56:48,610 --> 00:56:51,560
The environment which we operate
in is inherently uncertain,
1074
00:56:51,560 --> 00:56:53,520
the future is uncertain
1075
00:56:53,520 --> 00:56:57,203
and the impact of our decisions
are often very uncertain.
1076
00:56:59,330 --> 00:57:02,190
- Some people might want to
hammer the Bank of England
1077
00:57:02,190 --> 00:57:04,530
for not knowing what's around the corner.
1078
00:57:04,530 --> 00:57:07,633
But you can't blame them
for the nature of chance.
1079
00:57:08,995 --> 00:57:12,290
And though the Bank can't give
us the information we want,
1080
00:57:12,290 --> 00:57:14,963
I think they show the way
to the wisdom we need.
1081
00:57:20,720 --> 00:57:24,173
There's just no use in looking
for absolute certainty.
1082
00:57:25,350 --> 00:57:27,893
We can never rely on predictions.
1083
00:57:29,620 --> 00:57:33,503
We can tame chance,
but only up to a point.
1084
00:57:35,010 --> 00:57:38,310
Putting numbers on
chance is a powerful way
1085
00:57:38,310 --> 00:57:39,943
to get a handle on the future.
1086
00:57:41,350 --> 00:57:43,830
But these numbers can only ever be as good
1087
00:57:43,830 --> 00:57:45,883
as the information we have to hand.
1088
00:57:46,850 --> 00:57:49,410
Though we try to measure
reality with precision,
1089
00:57:49,410 --> 00:57:51,923
sometimes they're little
more than guesses.
1090
00:57:53,150 --> 00:57:55,970
What all this means is that uncertainty
1091
00:57:55,970 --> 00:57:59,260
is an essential part of being alive.
1092
00:57:59,260 --> 00:58:01,180
And whether our uncertainty
1093
00:58:01,180 --> 00:58:04,570
ultimately comes from out there or in here
1094
00:58:04,570 --> 00:58:06,220
won't, in the end, matter,
1095
00:58:06,220 --> 00:58:10,620
because either way surprises
will most certainly happen.
1096
00:58:10,620 --> 00:58:13,170
For instance, in this year
of the Diamond Jubilee,
1097
00:58:13,170 --> 00:58:15,330
I found a chicken nugget
1098
00:58:15,330 --> 00:58:18,140
in the shape of Her Majesty the Queen.
1099
00:58:18,140 --> 00:58:20,476
What's the chances of that?
1100
00:58:20,476 --> 00:58:24,226
(playful instrumental music)
1101
00:58:25,542 --> 00:58:28,125
(bell dinging)
81969
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