Equation 15 · Why Average Success Rate Hides the Failures That Matter Most
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Suppose an evaluation runs n independent trials of a consequential task and observes zero failures above the severity threshold . It is tempting to read that as evidence the risk is negligible. It is not, and the size of the gap has a name: the rule of three. If the true failure probability is , the probability of observing zero events in n independent trials is (1-)^n ; setting that probability equal to 0.05 and solving gives n -3 , and for small , where - , this reduces to the boundary
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