Understanding Moments
updated 1mo ago
Understanding Moments
- Anscombe’s Quartet : Four sets of numbers that look identical on paper (mean average, variance, correlation, etc.) but look completely different when graphed. Describes a situation where exact calculations don’t offer a good representation of how the world works.
from 100 Little Ideas by Morgan Housel
There are three important aspects of probability that we need to explain so you can integrate them into your thinking to get into the ballpark and improve your chances of catching the ball: Bayesian thinking Fat-tailed curves Asymmetries
from The Great Mental Models Volume 1: General Thinking Concepts by Rhiannon Beaubien
such as the Kolmogorov-Smirnov test, the meaning of which, I have to admit, I had forgotten. (It’s a way to determine whether a model correctly fits data.)
from Everybody Lies: The New York Times Bestseller by Seth Stephens-Davidowitz
Statistics for the Rest of Us: Mastering the Art of Understanding Data Without Math Skills (Advanced Thinking Skills Book 4)
The goal, then, should be to understand variation and, more importantly, to differentiate between the two types of variation. One kind is predictable and can be planned for. The other kind can’t be predicted. Sometimes it can be addressed, but some events are “black swans,” freak occurrences that may never happen again. The key is understanding the
... See morefrom Deming's Journey to Profound Knowledge: How Deming Helped Win a War, Altered the Face of Industry, and Holds the Key to Our Future by John Willis
The goal, then, should be to understand variation and, more importantly, to differentiate between the two types of variation. One kind is predictable and can be planned for. The other kind can’t be predicted. Sometimes it can be addressed, but some events are “black swans,” freak occurrences that may never happen again. The key is understanding the
... See morefrom Deming's Journey to Profound Knowledge: How Deming Helped Win a War, Altered the Face of Industry, and Holds the Key to Our Future by John Willis
A key aspect of thinking quantitatively is understanding the laws of probability and randomness.
from Keeping Up with the Quants: Your Guide to Understanding and Using Analytics by Thomas H. Davenport
Means, medians, and standard deviations are examples of descriptive statistics. They are often useful, but not very interesting from a statistical or mathematical perspective. Inferential
from Keeping Up with the Quants: Your Guide to Understanding and Using Analytics by Thomas H. Davenport