Thursday, October 2, 2014

House of CardsCentral Limit Theorem Proof:
  1. Depends on Taylor's Theorem.
  1. Taylor's Theorem depends on Calculus
  1. Calculus depends on a function being  differentiable.
  1. Differentiable functions exist if the function is smooth at the tangent.
  1. Derivative is not defined at discontinuities. 
Dilemma: What in Nature is Smooth ?


Statistical Assumptions: (http://en.wikipedia.org/wiki/Statistical_assumption)

  1. In practice more than 31 items are necessary before any statistic can be calculated.
  2. Random variables are IID - Independent, Identically distributed.
  3. Central Limit Theorem - in larger sample populations tend to be a Normal distribution.
  4. ... see Wikipedia and it's associated references
This means that the pictures of the items on the previous page are "undefined".

The dilemma is that humans can easily recognize these objects.

Wednesday, September 17, 2014

TruthOrStatistics-InNature


Truth or Statistics


In nature we call truth: 
               earth, wind, fire, air
               leaves, trees, forests
               rain, streams, rivers, oceans
               sun, fog, rain, snow, antartica 
               dust, sand, desert, sahara
                

In mathematics we have:
               x, y, f(x)
               functions - linear, non-linear,  logistic, differential, transcendental 
               
In financial analysis they call it Alpha.  
                http://seekingalpha.com/

Friday, September 5, 2014

Truth

Leaf, Twig, Branch, Tree, Forest...





Rain Drop, Rain, Stream, River, Ocean