Many of us are not familiar with the odds of random finance. It affects our outlook on financial matters.
Take one example: Flip 100 coins, heads or tails; there is a 75% chance of a streak of 6 or more. And a 10% chance of a streak of 10 or more
Look what this does when we observe what analysts say about securities’ markets. Why they are up or down. You hear comments after market closings about events which really reflect randomness. But the comments attribute specific causes only that occur in the minds of the commentators.
Sporting event progress is not the purview of this blog, but the same randomness prevails, and should be kept in mind.
No comments:
Post a Comment