Swanning about: Fooled by Algebra?http://www.unz.com/jthompson/swanning-about-fooled-by-algebra/ …
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It seems that Taleb has a poor opinion of many people. “Paper shufflers” probably include all the backroom workers who keep the books and process the transactions of star traders.
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IQ items are not arbitrary, butare selected to represent a wide range of abilities drawn from actual tasks and real-life problems. They correlate highly with tests which specifically base themselves on real life tasks in American society, such as the Wonderlic Personnel Test.
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In a Scottish population study, Ian Deary has shown that intelligence tested at age 11 predicted lifespan into old age. Brighter people were capable of surviving longer than the less bright. Taleb is wrong again.
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A rough measure of ability can be obtained in 2 mins. Sure, many people favour the practical over the academic, and might concentrate best on real-life problems. On a broad range of people and a broad range of real-life problems, intelligence tests maintain predictive utility.
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One test of "convexity" would be to see what the correlation is between IQ and options trading/financial investments. The latter are real world tests of considerable significance, and a null result would strengthen his argument.
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Ask and ye shall receive. https://www.sciencedirect.com/science/article/pii/S0304405X1100211X …pic.twitter.com/0aNerYYKA9
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