Without normalising, you could (simple suggestions that you might understand):
Simple average like shadow Use median or mode Remove outliers Aggregate the data Analyse the data and methods and assign weightings based on perceived reliability
Or take the most conservative like you have - bias showing
All have their good and bad points.
By that response, you don't know what you're talking about. And the main reason not to use an average is that it is meaningless across different data sets.
Yes, Terry's inherent fear of risk has cost him a lot of money.
If he had pulled the trigger on the Sydney property he was thinking about buying half a decade ago, he'd be a lot wealthier now.
But his fear of risk and overly conservative nature held him back.
Fortunately, he knows how to do regression and stuff, so it's not all bad.
No, it's a principle used in risk analysis and risk management globally. The idea that investment based on robust risk management is "too conservative" means that suburbanites would opt out of a range of different investment vehicles. Of course, that's not true; they're the reason it exists. And the suburbanites that cannot grasp simple concepts should probably be as conservative as possible anyway.
By that response, you don't know what you're talking about. And the main reason not to use an average is that it is meaningless across different data sets.
It's not meaningless - it's imperfect sure but not meaningless.
I see that in seeking perfection you may be held back and paralysed by fear. A robust risk framework allows you to make a commercial call it shouldn't be used to paralyse.
It's not meaningless - it's imperfect sure but not meaningless.
I see that in seeking perfection you may be held back and paralysed by fear. A robust risk framework allows you to make a commercial call it shouldn't be used to paralyse.
Suburbanites make plenty of investment decisions with zero understanding of how to frame risk. I think that I've illuminated that.
Shadow
9 Oct 2015, 09:11 PM
Hasn't served you very well though. The suburbanites are winning.
It's not about me, but if it were about me, the ability to properly fame risk and to work with data has done me well. In fact, I would go as far to say that those of my ilk have ample opportunity in the current climate. We're not selling time shares.
The suburbanites are winning is nothing more than how they feel at the present time. That doesn't mean that the suburbanite should live in a flood of ignorance.
Nevertheless, you'd be a lot better off it you had bought that house half a decade ago, instead of being paralysed by fear.
That depends if the objective value of the properties increased relative to expectations. If the suburbanite has a prudent approach to risk management, then there is less chance that they will be disappointed and they will also be better prepared for unexpected events. Simple stuff and far more valuable than the smirk of a troll.
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