Posts Tagged ‘big data’

Investment Decisions – Brains Vs. Computers; Which is Better?

June 13, 2017

The two points of view represented below are both well reasoned, conflicting, and cogent, but can they both be right?  The experts currently disagree, but maybe one day the question will be answered definitively.  For now, it makes for an interesting debate, and only time will tell who is right.  Today’s answer may not be tomorrow’s answer.

A key question is how much data does one need in order to make smart investment decisions.  Those who believe best decisions come from analyzing tons of data lean towards computer algorithms, while those who think smart evaluations don’t require looking at every piece of data lean toward human understanding and interpretation.

The term “quants,” refers to those quantitative analysts who crunch the number and are more reliant on computers and algorithms.

Why Brains Are More Reliable Than Machines – WSJ

Quants_ Best Strategy Is From the 17th Century – WSJ

Good enough IS good enough.

April 25, 2014

There is an old saying that “Good enough, never is.” While there is much wisdom to that saying, things are changing.

In the day of ‘big data’, the saying is revised by Pat Helland who writes, “If you have too much data, ‘Good enough is good enough.'”

In their book “Big Data,” Viktor Mayer-Schoenberger and Kenneth Cukier explain that when you are dealing with massive amounts of data, as opposed to much smaller samples, occasional errors become less significant. Statistics is becoming less about samples describing the population and more about the population revealing its secrets to new methods of big data analysis. Storing massive amounts of data, and using it to reveal correlations, linear and non-linear, is now replacing hypothesis testing in statistics.