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wasp
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Joined: June 28th, 2003, 5:17 am

fooled by randomness

January 23rd, 2004, 11:13 am

I was reading the book fooled by randomness by taleb.In his website he has shown the mathematical proofs for the example he has given the book.1.There i come across with the term emometer.. Can someone explain me waht is meant by emometer ??2.In the same problem he has defined a distribution of wealth generation process with a mean and a sigma.But i am still not clear based on what theory he has represented the wealth generation process by this particular distribution.why didnt he take any other distribution like standard normal distribution etc.Following is the link for anyone who wants to see the mathematical treatise of the example by taleb.http://pw1.netcom.com/~ntaleb/dentist.pdf.wasp