This document contains only my personal opinions and calls of judgement, and any comment is an opinion, in my judgement.
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These notes are opinions about miscellaneous (non-computing) topics, often brief informal reviews of products or shops or places ranging from canned food to pubs.
When NN Taleb
writes
if I am uncertain about the skills of the pilot, I get off
the plane
he is not making a point about probability or
statistics, he is making a point about operations
research, as he is arguing about the expected
payoff of an operation (a decision).
Note: that it is operations research is
also trivially obvious from his description of his interest
being risk management
, as
one of his insights is
Risk management is concerned with tail properties and
distribution of extremes, not averages or survival
functions
.
The point that he is making across his work is the
(subjectivity's) one that we study probability and statistics
for operational reasons, that is to essentially make useful
bets. Therefore we should want to know about not just simple
summaries of samples and populations, but also about the
shapes of their distributions, especially if they are highly
asymmetric, because the operation that needs to be informed by
such knowledge is betting
, that is making
decisions.
Note: The betting approach is clear even just from the title of his paper How to Price an Election: A Martingale Approach.
So in the case about uncertainty about the skill of the pilot, that is we don't know which is more likely, that the pilot is skilled or unskilled, we compare the payoff of betting right or wrong that the pilot is skilled or unskilled, where the payoff of a successful flight is some advantage like a profit from a deal, and that of an unsuccessful one is losing limbs or life.
If we bet wrong that the pilot is skilled the likely payoff is hugely negative, while if we bet right the likely payoff may be moderately positive, and if don't know which way to bet, the safe bet dominates.
That it is an operations research is easily demonstrated by changing one of the payoffs: if one needs to flight to have a life-saving operation that cannot be delayed, then the payoff of a successful flight is huge, and between the likelihood of death if one does not fly, and the uncertainty of living if one flies, the payoff of the former overrides the uncertainty.
More generally statistical summaries that result in expected values are good for betting only in the long run, assuming that the long run exists and the outcomes are erotic.
NN Taleb is thankfully spreading more awareness of better understanding of probability and statistics but sometimes he simplifies a bit too far, for example:
As we saw, a situation is deemed non ergodic here when observed past probabilities do not apply to future processes. There is a “stop” somewhere, an absorbing barrier that prevents people with skin in the game from emerging from it
The problem here is that the word ergodic
is often used in several different meanings, but its proper
meaning is not the one used here, because the quote above
describes statefulness rather than ergodicity.
Ergodicity is sort of a primitive concept
so it can be defined in many ways, but it is a concept most
relevant in information theory to describe a type of source of
signals under sampling. Fundamentally ergodicity happens when
the sampling is from an unchanging population, that is the
samples may be biased but not misleading. A radio station that
transmits only classical music is ergodic, one that transmits
50% classical and 50% pop is ergodic, one that transmits
classical, jazz, talk radio etc. unpredictably is not
ergodic.
Ergodicity is very related to one of the meanings of entropy
, the one in information theory; a
source of signals (samples) is the more ergodic the lower its
entropy is, that is the less its samples are surprising
.
That has as such nothing to do with statefulness, and it is statefulness that creates absorbing barriers.
There is however a link between ergodicity in information theory and statefulness, and it is that in thermodynamics there are notions of ergodicity and statefulness that are tied to that of statefulness, and indeed that is a pretty common situation. But it is best to clearly separate the concepts of entropy and statefulness.
Some years ago I wanted to buy some safety can openers and there are some updates after a few year:
There is now a similar model the Culinare MagiCan Opener which is the one that I am trying next. I also figured out two features to avoid:
It is often a question why on mobile phones vendors prefer
for users to install their apps
to them
using the web mobile site; in most cases the app is actually a
somewhat customized browser core, usually
Electron.
The most likely answer is simple: users who install apps tend to give them all the requested permissions, which are usually a lot wider than the permissions the equivalent web site would be given by a generic browser accessing it: generic browsers are in part designed for the interests of the users, while apps as a rule designed only for the interests of the vendor.
Many sites, especially if accessed from EU countries, offer options as to which tracking cookies to enable. To avoid hassle many people just enable all of them, which allows a lot of online surveillance. But often choosing a subset makes sites less useful or more annoying later.
There are usually two distinct sets of settings,
LEGITIMATE INTEREST
and CONSENT
, where the
latter enables the more intrusive tracking, plus various
categories in each.
The most important setting to enable is often under
CONSENT
and it is to that to Store information on a
device
. This sounds ominous, but it is essential to enable
the cookie
that stores the other tracking
settings. Without enabling this the tracking settings will
have to be re-specified for each page.
Apart from that it is often useful to enable at least the
LEGITIMATE INTEREST
level of two other tracking
settings:
Functional: many sites use these cookies to maintain state between pages such as their logic sequence or choices made my users in earlier pages. Sometimes they require repeated entry of choices if they are disabled.
Content Performance: there is little harm in enabling this as the content is anyhow provided by the site and accesses are logged regardless.
Some site offer a tracking settings menu that initially
offers only a choice about the Consent
level settings
and they are unthreateningly all REJECT
ed by default,
while the LEGITIMATE INTEREST
settings are in a sub-menu
and are all turned on by default. Please remember to
OBJECT
to them and only enable those you really want.
Most large companies have huge pricing teams whose only
purpose is to find new ways to shaft their customers by
finding ways to have complicated fee structures that charge
more than headline
prices seem to be
like.
This is part of the general corporate strategy to aim to offer the worst possible service at every price-point, in order to get customers to upgrade to the next price-point and pay more than they would otherwise. Which indicates that competition is largely absent as otherwise corporates would try to compete on simple and good value, rather than trying to fool customers more than competitors.
A particular example I recently found is the O2-UK monthly tariff, which every year increased by RPI plus 3.9%. As always the increase in prices is RPI as it is larger than CPI (which is instead used for increases that benefit people), but why the additional 3.9%, which means that prices increase by 50% every 10 years? Do the costs of telecom companies really increase by 3.9% above inflation? Of course not: it is just a clever way to shaft the customer every year a bit more, hoping that they don't notice.
The model chosen by mobile telephone companies is to assume that customers dislike to change phone numbers, and therefore to price the initial tariff low, and then pile on increases and fees once they are locked into their new phone number.
What are the solutions for customers? I think three counter moves:
two stepauthentication and contact numbers for banks etc.; this is also essential in case a mobilephone or a SIM is lost or stolen.