“I learned the hard way in 2008 that well-established algorithms (computer models) for my industry were fatally flawed and did not properly consider statistically rare, Black Swan events. This fabulous NYT’s article points out that as a society we are using computer algorithms to help us make big decisions, more and more…that’s generally good, but it can be very bad if these algorithms are unaccountable, “black boxes”…

…They must be transparent to all and their assumptions and output constantly audited for logic and common sense. Think about the biggest one these days…climate change models (algorithms)…have they really been audited and certified to be accurate? I don’t think so and yet many of us want us to change our entire economies and way of life based on these untested, filled with assumptions, models that profess to predict weather and sea levels decades into the future. How is that possible, when few algorithms/computer models can predict even one year out?”, Mike Perry, former Chairman and CEO, IndyMac Bank


Posted on August 3, 2016, in Postings. Bookmark the permalink. Leave a comment.

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