In the book Signal and Noise, the author mentions several times that interdependence in data can make things more complicated. Using examples from the book or your own business examples explain how interdependent data can and SHOULD effect your interpretation of the results. (Hint: the ratings agencies failed to recognize this interdependence when calculating risk).

You see a stock that you believe is highly undervalued and want to purchase as many shares as possible. However you have limited cash, only about $500.00. So you borrow and additional $9,500.00 dollars in order to purchase the shares. You have just made a _______________, which increases the risk you face should the stock price drop.

What is hemosiderin?

Research demonstrates that the biggest factor in determining whether or not an investor earns returns that match the overall earnings in the market is having a savvy advisor who chooses the right stocks.

In order for a test or instrument to be valid it must first be reliable.

According to Nate Silver, success in baseball and poker requires high skill, but not luck.

What is hemosiderin?

Qualitative data is superior to quantitative data.

Local weather forecasts are typically more accurate than those from the National Weather Service.

Humans add value to weather forecasts, above and beyond what can be gleaned from computer forecasts alone.