Fat Tails, Survivorship Bias, and the Illusion of Exponential Growth - Xiang Shi
Nassim Taleb warns us of the dangers in misapplying linear statistical methods (e.g. regression, correlation) to compare a fat-tailed variable (e.g. wealth, income) to a thin-tailed one (e.g. IQ test scores) in his book "Statistical Consequences of Fat Tails". The fat tails - where the extremes lie and …
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9 months ago
Fat Tails, Survivorship Bias, and the Illusion of Exponential Growth - Xiang Shi
Nassim Taleb warns us of the dangers in misapplying linear statistical methods (e.g. regression, correlation) to compare a fat-tailed variable (e.g. wealth, income) to a thin-tailed one (e.g. IQ test scores) in his book "Statistical Consequences of Fat Tails". The fat tails - where the extremes lie and …
https://xshi19.github.io/fat-tails-survivorship-bias-and-the-illusion-of-exponential-growth.html