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Tag Archives: big data

Randomness of Correlation

This tutorial presents the intuitions of the randomness of sample correlation (spurious correlation) and the methodologies in derivations. Some later sections are somewhat technical as rederived an old equation with more precise functions (in order to apply to fat tails) and showed the distribution of the maximum of d variables with n points per variable. […]

The N=1 Fallacy, Nassim Taleb – Seth Roberts Tribute

This video was recorded at UC Berkeley on August 10, 2014 as part of a series of talks to honor Seth Roberts. HatTip to K Kalidasan  

Big Data Caveats, Front and Center – Information Management Blogs Article

Given that backdrop, Taleb’s misgivings on big data and analytics aren’t at all surprising: “We’re more fooled by noise than ever before, and it’s because of a nasty phenomenon called “big data.” With big data, researchers have brought cherry-picking to an industrial level … Modernity provides too many variables, but too little data per variable. […]

An additional argument against BIG DATA…

An additional argument against BIG DATA, which people are starting to discover just now, is that there are about 35,000 different variables in economics and finance. And we have usually, less, much less than 10,000 data points per variable. This (plus fat tails) explains why econometrics has not been able to deliver. (cont) To imagine […]

The problem with Big Data…

The problem with Big Data that all these consultants/proponents are not getting: you cannot separate the statistical problem from the researcher’s incentive (convex payoff, like an option). From the many angry responses, it seems that these big data people seem to be years, many years behind… via The problem with… | Facebook.