Menu Home

One place not to use the Sharpe ratio

Having worked in finance I am a public fan of the Sharpe ratio. I have written about this here and here. One thing I have often forgotten (driving some bad analyses) is: the Sharpe ratio isn’t appropriate for models of repeated events that already have linked mean and variance (such […]

Drowning in insignificance

Some researchers (in both science and marketing) abuse a slavish view of p-values to try and falsely claim credibility. The incantation is: “we achieved p = x (with x ≤ 0.05) so you should trust our work.” This might be true if the published result had been performed as a […]

A bit more on sample size

In our article What is a large enough random sample? we pointed out that if you wanted to measure a proportion to an accuracy “a” with chance of being wrong of “d” then a idea was to guarantee you had a sample size of at least: This is the central […]