People don't actually believe this type of analysis... do they?
You have it turned upside down. The analysis is of people's beliefs. In other words, the underlying data is created from the beliefs of the people who trade it, and the analysis is taking those beliefs and applying it to a specific question.
The entire options market is built on this kind of analysis.
You have it turned upside down. The analysis is of people's beliefs. In other words, the underlying data is created from the beliefs of the people who trade it, and the analysis is taking those beliefs and applying it to a specific question.