Standard deviation is over

I first learnt about the concept of Standard Deviation sometime in 1999, when we were being taught introductory statistics in class 12. It was classified under the topic of “measures of dispersion”, and after having learnt the concepts of “mean deviation from median” (and learning that “mean deviation from mean” is identically zero) and “mean…

Time for bragging

So the Karnataka polls are done and dusted. The Congress will form the next government here and hopefully they won’t mess up. This post, however, is not about that. This is to stake claim on some personal bragging rights. 1. Back in March, after the results of the Urban Local Body polls came out, I…

Addition to the Model Makers Oath

Paul Wilmott and Emanuel Derman, in an article in Business Week a couple of years back (at the height of the financial crisis) came up with a model-makers oath. It goes: • I will remember that I didn’t make the world and that it doesn’t satisfy my equations. • Though I will use models boldly…

The Trouble With Analyst Reports

The only time I watch CNBC is in the morning when I’m at the gym. For reasons not known to me, my floor in office lacks televisions (every other floor has them) and the last thing I want to do when I’m home is to watch TV, that too a business channel, hence the reservation…

Kabaddi and Jesus Navas

I’ve always talked about the Kabaddi style of solving a problem. In Kabaddi, when you are defending, six out of the seven players in the team form a chain in order to encircle the attacker. The seventh defender, however, strikes it alone, in a different direction, trying to draw the attacker into a position where…

Orange Juice and Petrol

So I was reading this article by Ajay Shah about administered pricing for petroleum. He does an excellent (though it gets a bit technical in terms of statistics) analysis about what could go wrong if the government were to free pricing of petroleum products. He mostly argues in favour of deregulation, and that is a…

A Balance Sheet View of Life

The basic idea of this post is that interpersonal relationships (not necessarily romantic) need to be treated as balance sheets and not as P&L statements, i.e. one should always judge based on the overall all-time aggregate rather than the last incremental change in situation. Just to give you a quick overview of accounting, the annual…

Randomizing advertisements

This 7.5 minute break in the middle of an IPL innings is a bad idea. The biggest problem is that everyone knows the exact length of the break, and can use it to do stuff – like cook, or clean, or crap, or fag, or maybe watch the Everton-Man U shootout. 7.5 minutes is a…

Taleb’s Recipe

No, unlike the previous post, this has nothing to do about food. It is about Nassim Nicholas Taleb’s recent op-ed in the Financial Times where he gives his “recipe” for saving the global financial system. Two of my favourite bloggers Arnold Kling and Felix Salmon have responded to it, but I didn’t like either so…