I'm looking at different career choices and in particular, academic research projects. I've tried to compare their impact by using some Fermi calculations, including working out:
- the magnitude of the problem the research will attempt to solve
- the likely value of the research if it is successful
- the likelihood it will be successful
- my marginal contribution to the research if I get involved with it
My calculations seem like they could be easily out by a couple of orders of magnitude. And it makes a difference--one less order of magnitude and the project is not more than the value of my marginal career impact if I simply maximized income and earned-to-give. Of course...who knows...I might have the order of magnitude the other way around, and perhaps the research project could be even more impactful.
Honestly, it seems like a bad idea to make any kind of decision based on this process, but if I want to know which career path has the most impact, I don't know any other way to do it!
So I have lots of questions, but the biggest one is: if you don't use this awfully flawed method to decide what the impact of a career path will be, what else would you use?
Firstly, Monte Carlo simulations (such as on https://www.getguesstimate.com/ ) is likely more precise/useful than pure Fermi estimates, as they make uncertainty, including your consideration of the value possibly being off by factor 10, explicit and thus you can have greater confidence in the results. One advantage Fermi estimates definitely have is that they force you to think about the different components of the problem, or in this case how different careers contribute to your impact. But they are generally speaking primarily helpful to estimate orders of magnitude, and are thus not all that useful in comparing different options unless they lie very far apart.
Secondly, I agree with shawzach that it makes a lot of sense to talk your career considerations through with other people. I used EAGx Virtual for that purpose and looked for all the people who might have something to contribute to my career considerations. But then again, it differed from your situation in that I didn't have several alternatives but rather one preexisting plan and wanted to figure out whether it was "good" or I should look further for alternatives. Still, people might be able to add a few crucial considerations or just arguments you hadn't thought of before that affect your estimates.