BrettNortje
Banned
- Joined
- Jul 14, 2016
- Messages
- 793
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- Location
- Cape Town
- Gender
- Male
- Political Leaning
- Centrist
This is quite exciting, as, it mixes maths with economics and philosophy, things i find a liking for, of course. basically, it is about unknown factors coming together for a scientific analysis or study and explanation.
So, let's get started with the first on on the wikipedia list; "how to detect and correct for systematic errors?"
If we were to want to detect errors, we first need to define "an error." an error might be where the facts are false, or the figures are false. to check facts, in something as broad as english, we need to observe some things are obvious and make sense, and others do not. if i was to tell you that investing a million into a blue chip stock would only bring you seven percent yields over a year, and instead investing five hundred thousand in smaller businesses would bring you more, you would laugh, yes? let me explain...
Buying 1,000,000 worth of microsoft would get you say 50,000 shares at 200 a share. selling them would bring in more or less the same as you bought them for, so, as it is better to invest in companies this big rather than simply banking it, it would yield 7% profit for you over a year or so, coming to 70,0000 yes? if you were to invest 500,000 into a company that sells it's shares for 20, you would get 25,000 shares. the rate of growth for the smaller business is about 10%, so, you will have gained 500,000 in profits. as we can see now, it matters more how many slices of cake you have than the icing, yes?
So, it was an error to invest in microsoft, yes? this error is reflected by 'comparisons.' to detect an error, it is good to do some book keeping, to check the facts of all investments, and, find the best one, considering in out ratio or gross capital, depending which is more. this is relevant for investing and banking, of course, errors. this is economics mixed with math and philosophy if you were to ask me, holding true to my own definition, of course.
Now, detecting errors would become easier with 'research.' then, there is comparing known effects, and comparing old data. an error is where you have taken more and given less, so, giving more to the pessimism and less to the optimism is correct. if you were to round up for your income and down for your expenses, that is an error. this way, making errors will have no effect other than present surprises.
So, let's get started with the first on on the wikipedia list; "how to detect and correct for systematic errors?"
If we were to want to detect errors, we first need to define "an error." an error might be where the facts are false, or the figures are false. to check facts, in something as broad as english, we need to observe some things are obvious and make sense, and others do not. if i was to tell you that investing a million into a blue chip stock would only bring you seven percent yields over a year, and instead investing five hundred thousand in smaller businesses would bring you more, you would laugh, yes? let me explain...
Buying 1,000,000 worth of microsoft would get you say 50,000 shares at 200 a share. selling them would bring in more or less the same as you bought them for, so, as it is better to invest in companies this big rather than simply banking it, it would yield 7% profit for you over a year or so, coming to 70,0000 yes? if you were to invest 500,000 into a company that sells it's shares for 20, you would get 25,000 shares. the rate of growth for the smaller business is about 10%, so, you will have gained 500,000 in profits. as we can see now, it matters more how many slices of cake you have than the icing, yes?
So, it was an error to invest in microsoft, yes? this error is reflected by 'comparisons.' to detect an error, it is good to do some book keeping, to check the facts of all investments, and, find the best one, considering in out ratio or gross capital, depending which is more. this is relevant for investing and banking, of course, errors. this is economics mixed with math and philosophy if you were to ask me, holding true to my own definition, of course.
Now, detecting errors would become easier with 'research.' then, there is comparing known effects, and comparing old data. an error is where you have taken more and given less, so, giving more to the pessimism and less to the optimism is correct. if you were to round up for your income and down for your expenses, that is an error. this way, making errors will have no effect other than present surprises.