Signal versus noise: Difference between revisions

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{{a|devil||}}{{quote|“Say you look at information on a yearly basis, or stock prices, or the fertilizer sales of your father-in-law’s factory in Vladivostok. Assume further that for what you are observing, oat a yearly frequency, the ratio of signal to noise is about one to one (half noise, half signal) — this means that about half the changes are real improvements or degradations, the other half come from randomness. This ratio is what you get from yearly observations. But if you look at the very same data on a daily basis, the composition would change to 95 percent noise, 5 percent signal. And if you observe the data on an hourly basis, as people immersed in the news and market price variations tend to, the split becomes 99.5 percent noise to 0.5 percent  signal. That is two hundred times more noise than signal — which is why anyone who listens to news (except when very, very significant events take place) is one step below sucker.”
{{a|drafting||}}{{quote|{{taleb antifragile signal to noise}}
:—{{author|Nassim Nicholas Taleb}}, {{Br|Antrifragile}}
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{{d|signal-to-noise ratio|/ˈsɪgnl-tuː-nɔɪz ˈreɪʃɪəʊ/|n}}
{{d|signal-to-noise ratio|/ˈsɪgnl-tuː-nɔɪz ˈreɪʃɪəʊ/|n}}
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*[[Signal-to-noise ratio]]
*{{author|Nassim Nicholas Taleb}}, {{Br|Antrifragile}}

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