Monday, April 30, 2007

Random Musing

is it a case of being Fooled by Randomness?
One of the assertions of the author Taleb is that any information at too low level of time grain is indistinguishable from random noise. Thats the thought for the day for the data analysts among us.

Other interestesting notes are
  • The behavioral lapse of confusing Correlation with Causality.
  • The fallacy of misconstruing Power Law Distributions (where most values are below average and a few far above) as Gaussian Distributions (where most data values center around the average)
There is a good review in WSJ for the latest book by the Author about Popperian Black Swans which is an extension of his argument central to earlier mentioned book.

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