Quotes About Averaging

averaging several independent judgments (or measurements) yields a new judgment, which is less noisy, albeit not less biased, than the individual judgments.

But noisy systems do not make multiple judgments of the same case. They make noisy judgments of different cases. If one insurance policy is overpriced and another is underpriced, pricing may on average look right, but the insurance company has made two costly errors. If two felons who both should be sentenced to five years in prison receive sentences of three years and seven years, justice has not, on average, been done. In noisy systems, errors do not cancel out. They add up.

Averaging is mathematically guaranteed to reduce noise:

The promotion of 'average' individual causes a general levelling down.

NAXALT" fallacy, for "Not All [X] Are Like That." The NAXALT fallacy is the mistaken belief that because someone in the group lies at the extreme, the average does not exist.

I did precisely the wrong thing. The cotton showed me a loss and I kept it. The wheat showed me a profit and I sold it out. Of all the speculative blunders there are few greater than trying to average a losing game. Always sell what shows you a loss and keep what shows you a profit.

Some history clique had applied averaging software to the world's great spiritual books, then programmed it to spit out godlike decrees. For some reason, the software had told them not to eat pigs.

diversify across time. And that's what dollar-cost averaging does for you.

You don't want to hesitate to get in the market trying to have perfect timing; instead, use dollar-cost averaging and know that volatility can be your friend

Remember, volatility can be your friend with dollar-cost averaging, and it can also allow for another technique that will keep you on track, "rebalancing

Some investment advisors have turned against dollar-cost averaging because, as even Burt Malkiel admits, it's not the most productive strategy for investing in the stock market when it keeps going straight up—like it's been doing in the years following the recent Great Recession.

The general opinion in theoretical physics had accepted the idea that the principle of continuity ("natura non facit saltus"), prevailing in the microsoptic world, is merely simulated by an averaging process in a world which in truth is discontinuous by its very nature. This simulation is such that a man generally percieves the sum of many billions of elementary processes simultaneously, so that the leveling law of large numbers completely obscures the real nature of the individual processes.

importance, essence, and averaging. The importance of diversity in complex systems is the central theme of this book. Why does diversity matter? What roles does it play? I show that diversity has many roles and effects. Diversity can provide insurance, improve productivity, spur innovation, enhance robustness, produce collective knowledge,

In my view, investors should usually refrain from purchasing a "full position" (the maximum dollar commitment they intend to make) in a given security all at once. Those who fail to heed this advice may be compelled to watch a subsequent price decline helplessly, with no buying power in reserve. Buying a partial position leaves reserves that permit investors to "average down," lowering their average cost per share, if prices decline.

That's how the Law of Large Numbers works: not by balancing out what's already happened, but by diluting what's already happened with new data, until the past is so proportionally negligible that it can safely be forgotten.

The information I got from one person often contradicted the version I heard from another, so I'd long ago gotten into the habit of trying to hear as many different stories as I could and averaging them all out.

GMDC Share price has fallen from Rs.175 to 132 in just last 3 days of this week almost Rs.30 fall . Its downward trend is continuing since last one month from Rs.220. Ihus fall of Rs.90 and everyday it falls only so whoever is trying to average with dropped price must be making huge losses

When a share priced Rs.100 moves with price 20 steps up and down , then it is better to come out of it and sell the stock completely as it is slidind downward and mostly its downfall is not realised by traders. Classic example today can be seen in NALCO shares which has come down from Rs.130 to Rs.80 in just 2 months by slithering and slowly . Market fools this way only. Averaging has brought traders loss only. NEVER BUY WHEN CHART SHOWS DOWNWARD TREND no matter how much it has fallen

We've seen that even in the simplest situations nonlinearities can interfere with a linear approach to aggregates. That point holds in general: nonlinear interactions almost always make the behavior of the aggregate more complicated than would be predicted by summing or averaging.

That averaging gets to be a problem. I think the single biggest problem afflicting large companies is the difficulty of assigning a value to each person's work.

You're the average of the five people you spend your time with.

Averaging two guesses by the same person does not improve judgments as much as does seeking out an independent second opinion. As Vul and Pashler put it, "You can gain about 1/10th as much from asking yourself the same question twice as you can from getting a second opinion from someone else." This is not a large improvement. But you can make the effect much larger by waiting to make a second guess.

averaging the bids to arrive at a final price, the Leon

of exchange, one that would be impervious to the gamesmanship of gifted individuals. By functioning as an auction house and averaging the bids to arrive at a final price