Comments on: Mortgages, banks, and Jensen’s inequality http://www.johndcook.com/blog/2009/08/26/mortgages-banks-and-jensens-inequality/ The blog of John D. Cook Sat, 11 Feb 2012 22:42:11 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: nicolas http://www.johndcook.com/blog/2009/08/26/mortgages-banks-and-jensens-inequality/comment-page-1/#comment-96685 nicolas Fri, 05 Aug 2011 14:20:58 +0000 http://www.johndcook.com/blog/?p=2964#comment-96685 Yup its hidden convexity. They charge for that though. But how do you estimate how much ? They cant. no one can. So commercial pressure make it go to almost 0 and we end up with messy situation. Yup its hidden convexity.
They charge for that though.

But how do you estimate how much ?
They cant. no one can.
So commercial pressure make it go to almost 0 and we end up with messy situation.

]]> By: Al Chou http://www.johndcook.com/blog/2009/08/26/mortgages-banks-and-jensens-inequality/comment-page-1/#comment-53869 Al Chou Fri, 03 Dec 2010 17:51:46 +0000 http://www.johndcook.com/blog/?p=2964#comment-53869 I have been trying for 10 years to get programmers around me to see beyond the arithmetic mean as the only statistic of interest, but no one wants to hear about standard deviation, average deviation, etc. Savage's book is going on my wish list.... I have been trying for 10 years to get programmers around me to see beyond the arithmetic mean as the only statistic of interest, but no one wants to hear about standard deviation, average deviation, etc. Savage’s book is going on my wish list….

]]> By: John http://www.johndcook.com/blog/2009/08/26/mortgages-banks-and-jensens-inequality/comment-page-1/#comment-23521 John Wed, 26 Aug 2009 16:18:47 +0000 http://www.johndcook.com/blog/?p=2964#comment-23521 That is the essence of Savage's book: you cannot ignore variation. Savage does a remarkable job of communicating this idea to a non-mathematical audience. That is the essence of Savage’s book: you cannot ignore variation. Savage does a remarkable job of communicating this idea to a non-mathematical audience.

]]> By: Daniel Lemire http://www.johndcook.com/blog/2009/08/26/mortgages-banks-and-jensens-inequality/comment-page-1/#comment-23520 Daniel Lemire Wed, 26 Aug 2009 16:10:26 +0000 http://www.johndcook.com/blog/?p=2964#comment-23520 This is nice. You cannot safely ignore higher order statistics. This is nice.

You cannot safely ignore higher order statistics.

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