Nuclear engineer with a focus in nuclear plant safety and probabilistic risk assessment. Aspiring EA, interested in X-risk mitigation and the intersection of science and policy. Working towards Keegan/Kardashev/Simulacra level 4.
(Common knowledge note: I am not under a secret NDA that I can’t talk about, as of Mar 15 2025. I intend to update this statement at least once a year as long as it’s true. Update 2026: I am currently working on small modular reactor development at X-Energy.)
For a first cut back of the envelope kind of thing, I agree. There’s a great deal of value in simplicity. But EV modeling isn’t really just about predicting the future. It’s about decision making under uncertainty.
Anyway I think for serious decisions you should almost never get an EV just by multiplying point estimates. Any complex real world situation has:
Parameters with weird distributions. That means your point estimates probably will not be a good approximation of the mean.
Nonlinearities. If EV is anything more complicated than a product of multiple variables, you need the uncertainty distributions to get the right output.
Correlations between parameters. If you’re careful enough you can put all the common factors in separate independent variables, but you probably didn’t.
Using only point estimates suggests a mindset of quick and dirty, give me an answer whether or not it’s right. You will learn more and make better decisions if you try to make a model that represents your true state of knowledge about the situation.