Since all economic variables are fat-tailed - Regular thin-tailed statistics don't apply

antis3(25)

Published in

#economy

Words

0

Reading

0 min

Listen

Play

Tuesday, December 19, 2017 4:08 PM

This is the kind of bullshit delivered by a BSchool "Associate Dean". Dangerous BS.
Saying "data has fat tails" YET using ordinary MLE estimators, accepting modern portfolio theory, calculating CVaR, regressions, doing business as usual, is INCOHERENT. https://t.co/4W5Q2fjnq7 https://t.co/mmllll5mTP
— Nassim Nicholas Taleb (@nntaleb) December 19, 2017