Issues in Financial Mathematics and Statistics

[insomniacgrace]

Wise and comprehensive video clip. I just love hearing these word: "there's a sun in every person". Way of presentation is so cool. I am looking forward in doing my report like this, one of these days.

[MrBigEnchilada]

37:00 i actually thought about that and tried to use it.

[MrBigEnchilada]

read about Long-Term Capital Management (LTCM)

[mappingtheshit]

The math that should be used in Finance and Economics must be dynamical systems, variation calculus, bifurcations and random matrix theory... Other subjects just won't work.

[graw81]

I have watched 15 minutes of the video so far and I am absolutely loving it. Great speaker! Very informative video. Thanks.

[pufifa]

You can make money from home by knowing simple mathematics/statistics.

You'll get free starting 50USD.

/watch?v=dPKvO4hPWUA

[MikeyFlamingo1]

some wize man said that we dont die stupd ass jacck we multiply!!!! Like spock tupac spacely, fuck it i got 6 giant magic diamonds im holding for someon but ass hole dont need or come to shine wit me ok luv enjoy the increadible hylk fuck Weber I chanchged the vocabulary!!!!

[MikeyFlamingo1]

some wize man said that we dont die stupd ass jacck we multiply!!!!

[TheatreCritic]

i find it rather difficult to view the slides for this lecture on youtube. are they available for download anywhere?

[svtuition]

geat info

[bluehorse888]

I think you can claim that these models are not useful in the real world, but marketing firms and the like use statistical models for their marketing campaigns...it must work to some extent.

[wlwak]

The liars are those who know what a mean is and who know what a mode is and who know what a median is but they choose to present a mean as if it is a 'typical' value.

The 'average' earinings of men in the US, for example, will depend on the sample of men chosen. Go to a hollywood premier or wall street and the 'average' income will not be so typical of America. Go to a factory and you'll find something else. It is the people who deliberately use statistical sleight of hand who are the liars.

[wwwarburg]

Not only. empirically these are simply learning how to be wrong. Their cvognitive dissonance support them to grab the models and use them with wrong assumptions and therefore wrong outputs to sustain a wrong perception of the world and reality.

Human being will never change and his tendency to escape in "gnoseocrazia" and its jargon is just an examople not of sane humble culture but arrogant fear.

[viewerize]

The idiom, "a poor plumber always blames his/her tools", shows how silly to put blame on mathematical analysis not individuals for miscalculations.

To simply relying on models without knowing their constraints is a clear sign of mathematical illiteracy. I doubt the majority of these model users can even prove mathematically to why the models work.

[aryaditya80]

viewerize, you are right most of these 'quants geniuses' cannot prove most of the math they use. They do not have an understanding of the deeper structure of the math, they just do more advanced versions of plug and chug.

That said there are some brilliant mathematicians too who are blinded by greed and refuse to see the constraints of the models

[axe863]

@aryaditya80 Plug and chug... Are you serious? Even when I took undergraduate mathematical classes, I understood the dynamics. You mean they dont understand the economic significance of the assumptions in the model, right?

[axe863]

@aryaditya80 The old school Quants used inferior mathematical models but they wholly understood the assumptions that they were making.

[infantileretard]

@axe863 Maybe in your school people actually learn something, but in mine, it's plug and chug for most of the students.

[MrBigEnchilada]

@viewerize thumbs up

[juliancochran]

The problem with these subjects are that they all look 'from within the box'. The real world is incredibly complex. Modeling financial markets it is more complex than modeling even the movement of gas (in which even with extreme knowledge of conditions leads to butterfly effects that cannot be predicted). None of the references include guys like Mandelbrot who would claim that these models are not suitable for economics.

[Terrapinfan2007]

ms comput finance is bs,

they couldn't predict the crisis we see today.

best thing to do is invest in gold.

[vjpillay]

so this practitioner cant give lecture without reading from lap top.Not impressive- may be his memory capacity and ability of stochastic process are inversly correlated.

[saskloser]

get alife

[BezLekk]

lol

[antwiampofo]

very good