[YouTube] Breaking down Intuitively the Concept of Standard Deviation

SIMPLIFIED TUTORIAL, 1 (in the series where we break down concepts intuitively):
Before we talk about correlation, let’s discuss standard deviation, its analog in dimension 1. People don’t get while using it as a metric for deviation!

See the whole book (gets technical beyond Chapter 5)

Link to the Book: Statistical Consequences of Fat Tails: Real World Preasymptotics, Epistemology, and Applications

Nassim on CNBC Squawk Box: Bitcoin is a ‘gimmick’ and a ‘game,’ says it resembles a Ponzi scheme

“Black Swan” author Nassim Nicholas Taleb on Friday criticized bitcoin as a “gimmick,” telling CNBC he believes it’s too volatile to be an effective currency and it’s not a safe hedge against inflation.

Basically, there’s no connection between inflation and bitcoin. None. I mean, you can have hyperinflation and bitcoin going to zero. There’s no link between them,” Taleb said in a “Squawk Box” interview.

Link to the interview: cnbc.com/2021/04/23/bitcoin…

[YouTube] Correlation measures are misused in the presence of nonlinearities

Correlation measures are misused in the presence of nonlinearities.

(How a measure of unintelligence can give the illusion of high correlation with performance.)

Correlation measures are not supposed to be used in the presence of nonlinearities. When 2 variables correlate half the time (in a symmetric way around the mean), correlation will not be 50% but will show ~90%. Part of debunking IQ studies. If IQ works for disabilities but does not correlate with success, there is an illusion of correlation because of the biases in the metric.