The more sophisticated our data-gathering and data-crunching tools become, the greater the temptation to rely on mathematical models to represent and reshape our society. From Wall Street to neuroimaging to data-driven school reform, we are becoming increasingly reliant on objective-looking formulae to explain the slippery complexity of human nature.
Emanuel Derman is a Quant, one of the shadowy legion of mathematicians on whose models Wall Street relies to make trading decisions. Overreliance on such models, which Derman and others have argued are insufficient to explain human financial behavior, played a major role in bringing about the 2008 crisis from which the world’s markets are still reeling.
keyboard shortcuts: V vote up article J next comment K previous comment