Paper: On single point forecasts for fat-tailed variables

Abstract

We discuss common errors and fallacies when using naive “evidence based” empiricism and point forecasts for fat-tailed variables, as well as the insufficiency of using naive first-order scientific methods for tail risk management.

We use the COVID-19 pandemic as the background for the discussion and as an example of a phenomenon characterized by a multiplicative nature, and what mitigating policies must result from the statistical properties and associated risks. In doing so, we also respond to the points raised by Ioannidis et al. (2020).

Link to Paper – sciencedirect.com/science/article/pii/…

Nassim Taleb speaking at Business Insider Global Trends Festival 2020

Nassim Taleb portrait photo

From the website:

Nassim Nicholas Taleb is an American economist, philosopher and trader of Lebanese origin. In his academic work, he focuses on issues connected with probability, randomness and uncertainty. He is a professor at the University of New York and author of bestsellers: “The Black Swan. The Impact of Highly Improbable”, and “Antifragile. Things That Gain From Disorder”. The Sunday Times has chosen “The Black Swan” as one of the 12 most important books published after World War II.

Date: 19th – 23rd October 2020
9 hours of live streaming every day
Streaming link and access code will be given within 24-48 hours before the showtime.

For tickets go to in.bookmyshow.com

Fake Regression by Psychologists

Fake Regression by Psychologists (Fooled by Randomness), Based on the paper on Trust by Nicolas Baumard

How to detect fake regressions. Never pay attention to numbers before looking at the graph.

First I show how to spot fakes in a sinister paper by Nicolas Baumard et. al. linking people’s physical traits to (un)trusworthiness.

Second, more technically, I derive the distribution of the slope between two random variables and show how one can game it.

[YouTube] COVID Risk Conversation: Yaneer Bar-Yam and Nassim Nicholas Taleb

A continuation of Nassim and Yaneer’s regular conversation. In this video, they discuss:

1) The errors in ignoring scaling for pandemics. Why a doctor’s micro-expertise doesn’t transfer to collective risks?

2) How evidence-based medicine is closer to anecdote based medicine owing to silent risks?

3) The risks of morbidity must be accounted for.

4) How the dangers of vaccines do not scale.

[PODCAST] SophieCo Visionaries with Sophie Shevardnadze: Nassim on Covid-19 bringing socialism to America

The Covid-19 pandemic came as an external shock, almost unprecedented. How can we navigate the uncertainty of the post-pandemic future? We talked to the author of bestselling books ‘The Black Swan’, ‘Antifragile’, and ‘Skin in the Game’, risk analyst Nassim Nicholas Taleb.

SophieCo Visionaries is an Interview show on RT hosted by Sophie Shevardnadze where she talks to people who look beyond today and see the bigger picture.

Link to Podcast – soundcloud.com/rttv/sophieco-visionaries-nassim-taleb…

Link to Transcript – rt.com/shows/sophieco-visionaries/497321-taleb…