Tag Archives: statistical modeling

The shadows and light of models

How wide is the darkness? Uses of models The main way models are used is to: shine light on the “truth” We create and use a model to learn how some part of the world works. But there is a another use of models that is unfortunately rare — a use that should be common … Continue reading

Posted in Quant finance, R language | Tagged | 5 Comments

Perception switching

The current New Scientist includes an article about perception switching.  They use the figure below. “Why your brain flips over visual illusions” is about the brain and perceptual switching (the on-line version also has a great video to play with). These sorts of illusions provide a metaphor for how we should act when doing statistical … Continue reading

Posted in Statistics | Tagged , | 1 Comment