Category Archives: Probability

Black Scholes and Heat Diffusion

It is something of an interest that the Black Scholes equation can be converted into a diffusion equation. At first glance this seems very strange and fantastic, however, the more I look into it does not seem that special. Both … Continue reading

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Statistical Tests and Cause

Currently I am taking a course in applied statistics and I’m amazed at how little justification or thought there goes into causal claims arising from statistics. First, it occurs to me that statistics has nothing to say about the relationship … Continue reading

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What is probability

Probability concerns those things which are uncertain. A game of chance may bring this out more clearly. If you have a ball in one of your hands, you might make a wager with me that if I can guess where … Continue reading

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