A Practical Solution to the Reference Class Problem
Abstract
The “reference class problem” is a serious challenge to the use of statistical
evidence that arises in a wide variety of cases, including toxic torts, property
valuation, and even drug smuggling. At its core, it observes that statistical
inferences depend critically on how people, events, or things are
classified. As there is (purportedly) no principle for privileging certain categories
over others, statistics become manipulable, undermining the very objectivity
and certainty that make statistical evidence valuable and attractive to
legal actors. In this Essay, I propose a practical solution to the reference class
problem by drawing on model selection theory from the statistics literature.
The solution has potentially wide-ranging and significant implications for
statistics in the law. Not only does it remove another barrier to the use of
statistics in legal decisionmaking, but it also suggests a concrete framework
by which litigants can present, evaluate, and contest statistical evidence.