0

Posted by Michael Alfaro on August 3, 2009

Coin flipping, not necessarily random :)

Found this story about how coin flipping can be controled if you have the ability to toss with the same force every time… I’m going to practice my craps dice throwing again :)

Coin tosses are a classic metaphor in economics for randomness.  For instance, in his book about market efficiency, A Random Walk Down Wall Street, economist Burton Malkiel compares the price movements of the stock market to the random outcome of a flipped coin: “[S]ometimes one gets positive price changes for several days in a row; but sometimes when you are flipping a coin you also get a long string of ‘heads’ in a row.” According to Malkiel, mathematicians’ terms for the sequences of numbers produced by any random process—in this case a coin flip—is known as a random walk. To him, this is exactly what stock price movements look like; hence the title of his book.

Read whole story here

flipping-out-the-big-money_1249334708596

Topics: , ,

Add a Comment