Noise to Signal Ratio in Decision-making

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Noise to Signal Ratio in Decision-making
Jos Nieland, SIG Leader
In Taleb's book "Fooled by Randomness", noise versus signal plays an important role.
If you are making complex decisions, exposure to too much data can cause severe side-effects.
Nowadays there's lots of data, because of the blessings of computers and connectivity, but the share of non-relevant data increases as one gets more immersed into it.
Beware of data overloadData can be very toxic in large quantities for decision-makers, even in moderate quantities. Note that the more frequently you look at data, the more noise you are likely to get (rather than the valuable part called the signal); hence the higher the 'noise to signal ratio'.
Say you look at stock price information on a yearly basis and that at this yearly frequency the ratio of signal to noise is about one to one (say half noise, half signal). That means about half of change... Register
 

 
Noise to Signal Ratio in Decision MakingSign up
Mauricio Calderon Ortiz, Member
Keeping the indicators included in the control boa...
 

 
Noise to Signal RatiosSign up
Chapados, Member
I have three thoughts about the noise to signal ra...
 

 
Separating the Noise from the SignalsSign up
McCallum, Member
Is there a precise definition for the signal
 

 
Nice But in Itself Represents NoiseSign up
Abdul Majid Ashraf, Member
This is a nicely logical theory which ironically i...
 

 
3 Categories of Decision DataSign up
Andrew Blaine, Member
Firstly I think the ratio is misnamed, it should b...
 

 
Let the Users SelectSign up
Alpin McGregor, Member
If an organisation rations data being distributed ...
 

 
Design Filters to Separate the Signal from NoiseSign up
FAYEZ, Member
We can look at it as trying to listen to a radio s...
 

 
Noise to Signal Ratio Dependent on TrustSign up
Stibbe, Member
Noise and signal are both dependent on trust (acce...
 

 
The Importance of Meaning in Resonate the NoiseSign up
Mohamad Reza Golgol, Member
Thanks Mr. Jos Nieland for telling us about this i...
 

 
The Noise versus the Signal in Decision-makingSign up
Belay Gezahegn, Member
It seems that decision making processes involves t...
 

 
Data. Information, Knowledge and WisdomSign up
Benhoumeur
What's the difference between data, information, k...
 

 
Noise to Signal Ratio in Decision MakingSign up
Charis, Member
Raw data versus filtered data, acceptance of the d...
 

   

 
Noise Signal and ObjectivesSign up
Jos Nieland, SIG Leader
@McCallum: if th...
 

 
Data Information Knowledge WisdomSign up
Andrew Clark, Member
@Benhoumeur: I t...
 

 
From Knowledge to Wisdom?Sign up
Benhoumeur
I would think that wisdom should be ranked above k...
 

 
Wisdom, Knowledge and CharacterSign up
Andrew Clark, Member
@Benhoumeur: I d...
 

   

 
Signal, Causes and SymptomsSign up
Benhoumeur
Can we use signs, causes and symptoms interchangea...
 

 
Signs Symptoms and CausesSign up
Chapados, Member
Classically, a sign is an indication of a p...
 

 
Knowledge and WisdomSign up
Andrew Blaine, Member
@Andrew Clark: I...
 

   

 
Refocus on Signal / Noise Ratio in Decision-makingSign up
Jaap de Jonge, Editor
I agree with Andrew Clark that the discussion has ...
 

 
 

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