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Thursday, December 18, 2014

Irrational life

Humans are often thought of as utilitarian, able to maximize individual and societal utility. In this scheme, however, life itself is irrational. With a hard constraint on time to expiry for the individual, society and the environment at large, extending all the way to the small part of an instance of the multiverse that is visible, utility itself loses all meaning. Utility, then, has to be defined in the micro – there is no impact an individual can make on the universe, she has been assigned to. But she could, certainly, enhance utility for herself within the hard constraints that exist – time, space and the limitations of knowledge.

Individual, then, provides any reliable subset of the measurement of utility. There are many parameters in this complex function, mediated largely by initial conditions. In very limited horizons, it appears sustaining herself is paramount. Sustenance, however, seems to have differing meaning for different people. The cost of sustenance appears to linearly increase with wealth. Perhaps, the slope of utility is a more meaningful measure for the individual. If so, those who start with a higher cost of sustenance are less likely to be able to enhance individual utility. For this cohort, life is even more irrational than the populace at large.

Life, a highly irrational notion, continues with inexplicable regularity.

Monday, December 15, 2014

Millennials’ tech

A recent article in the International Journal of Business Information Systems investigates how social networking could be used positively during campus emergencies. The generation gap between the young and the old has been growing at such a rapid rate that the knowledge held by the young encompasses most of what is relevant for the future. Octogenarians in the Congress, aging bearcats that govern the economy and those waiting to retire at the top of large organizations are slowing down technology progress to such an extent that most in universities today will never consider working for a company or voting. Recent elections that swept a “red wave” across the country accounted for a 35% turn out – most showing up to send their relatives back to Washington.

The millennials certainly have the technology – to eliminate crime, to grow knowledge and to create next level societies. If the “wise men,” could remove the shackles, they can grow a lot faster. For the status-quo, findings such as “social networking has a positive effect in emergencies,” seem to be a new revelation – but for the millennials, it is part of their life. The internet – as described once by a policy maker as “a series of tubes,” has taken a toll – not only on the ego of those who came before but also their ability to be effective. This has happened before – airplanes and computers themselves opened up discontinuities that separated generations – and it will happen again.

Those, unwilling to admit ignorance at the face of accelerating technology, will destroy knowledge, wealth and the security of future generations.

Friday, December 12, 2014

Sunny value destroyers

A recent article in the Review of Accounting Studies, that apparently demonstrates CEOs with “sunny dispositions,” –  have a positive impact on stock price, is symptomatic of the time and money wasted by accounting and those who research it. Accounting, the bane of corporate America, deploys so many people – in Wall Street and inside companies, measuring, monitoring and reporting numbers - that have little impact on shareholder value. Part of the blame has to go to business schools, still steeped in tradition, graduating people with irrelevant skills for the modern world.

Shareholder value is seldom created by accounting or “sunny dispositions” of the CEO or the CFO, as claimed by the article. Apparently, the authors mistake bumps in stock price as shareholder value – it is not so. However, “sunny,” the reporter is, those who invest in the stock of the company, do care about the real assets of the firm and how they are growing. They do not really care how “gold plated,” the investment banker is and how McSleasy the consulting firm is. And BS, has an expiry date.

The idea that dressing up numbers and reporting them with a sunny disposition enhances the value of the firm has no empirical validation. 

Monday, December 8, 2014

Economic value of segregation

Humans, still fundamentally driven by visible features, created by less than 1% of their DNA, could be ahead of themselves as they struggle to create better societies and structures. Their recent arrival on a planet, substantially more sophisticated than themselves, signaled a regime change – preferential to tactics than strategy. For 100 thousand years, a mere glimpse of space time, they have been struggling to sustain a clan structure – first created by proximity, then by the shape of the skull and distance between the eyes and in the modern world, apparently by the color of the skin, the least compelling of the segregation schemes they have been able to devise.

If humans are unwilling and unable to rise over their mental constraints – one has to sympathize with them as they had very little experience with it. It appears that societal utility could be enhanced by segregation in transition, something that may extend over a century. A recent study shows that humans tend to segregate when the space occupied – say in a city – hits a threshold level. This indicates that a hard wired need to segregate exists in every one of the currently existing 7.2 billion specimens. Countries provide an efficient segregation scheme and for half the word’s population, the problem reduces to regional schemes – language, imperceptible shades of skin color, height and food. In any case, the need to segregate is as fundamental as the human itself.

Although it may be alarming for some to consider, it is possible that segregation is utility maximizing in transition to a higher level society. The planet, a sitting duck in the midst of space debris, may need to consider local and temporal maximization of utility – and segregation could be a dominant policy choice to maximize societal value.

Thursday, December 4, 2014

Ubiquitous Quantum

Recent observations from Princeton (1),  published in the Journal of Nature Chemistry advances the productive frontier of the intersection of Physics and Chemistry to influence biological systems. Scientists steeped in their chosen disciplines, chasing dead ends, have substantially reduced innovation potential and societal utility in the last few decades. The use of quantum mechanical modeling to expand our understanding of chemical properties and their interactions with biological systems is in the right direction. However, traditional life sciences companies do not have the skills or expertise to take advantage of this expanding knowledge.

Physics, the foundation of everything, is not understood well by scientists engaged in the use of chemical actions to impact even less understood biological systems. Chemistry, an inelegant and incomplete bridge, has effected a deadlock on innovation by encouraging incremental benefits. Better understanding of the nature and intent of electrons and the ability to predict their dancing clusters, may allow better design of interventions of biological systems by chemical means. More importantly, this may also open up possible magnetic and electric intervention pathways, something the status-quo appears to have little interest in.

Innovation is about the application of new ideas – it is not about incrementally improving what is existing.

(1) http://esciencenews.com/articles/2014/11/20/quantum.mechanical.calculations.reveal.hidden.states.enzyme.active.sites

Friday, November 21, 2014

Stochastically Jumping without a clue

Recent research from NYU (1) that apparently demonstrates that the modeling techniques used to forecast stock market fluctuations could be used to predict animal behavior – in this case, movements of zebrafish – ignores many fundamental aspects of modeling. First, unknown to most people in the financial industry, stock market fluctuations cannot be predicted.In spite of the proclamations of a recent Nobel laureate, who claims he could smell a bubble anytime anywhere, he is still to demonstrate a usable prediction ex.ante. And, high flying hedge fund managers, without insider knowledge, could never create alpha – risk adjusted excess returns, systematically. And, second, equating animal behavior modeling to stock market predictions shows a level of incomprehension in both areas.

Stochastic jumps do occur – the problem with such things is that they are not predictable. Perhaps what the NYU team is missing is the right language – the characteristics of the underlying process of the movement of the zebrafish appear to have stochastic jumps in it. But that has nothing to do with stock market modeling – an oxymoron. The reason the zebrafish is jumping stochastically is the same why stock markets do at times – arrival of new information. And, by definition these are not predictable.

As trillion $ slosh around an industry with no value added to society, further research toward predictions of stochastic jumps seems unwarranted.
(1) http://esciencenews.com/articles/2014/11/13/stock.market.models.help.nyu.researchers.predict.animal.behavior

Sunday, November 16, 2014

The scope of ignorance

The scope of space and time appears incomprehensibly large – covered by what is visible to us in a narrow slice, covering 15 billion years and speculated to be at least ten times as large, beyond the horizon. This knowledge, albeit imperfect, has not awakened the intellect of the homo sapiens, most still locked in tactical struggle for basic necessities and the rest, perpetuating ignorance in every action and thought.

The scope of human ignorance is at least as fascinating as the artifacts of space and time. Their arrival on a planet that is impossible to detect in space-time – a completely insignificant event – seem to be of great importance to them.The most ignorant of the lot – the religious – seem to engage in such acts that a child would find objectionable. On the other hand, the intelligentsia, claiming superiority, simply make up stuff, as if they are allowed to do so. The most ignorant believe that color of skin and hair and useless religious beliefs are, somehow important. On the other hand, the intellectuals and academics, having figured everything out, wait in amazement why the world has already ended.

Humans, the most comical construct, will continue their journey to the abyss of ignorance.

Saturday, November 8, 2014

Policy by convenience

A recent study from Duke (1) showing that politicians believe or disbelieve in scientific theories, primarily based on their policy orientation, should not come as a surprise to anybody who has been watching the campaigns. This is also the reason that half the country has checked out of the process, with no intent of ever returning. This number will continue to increase as more objective millennials take hold of an archaic system ran by octogenarians. The question is how long it will take to clean up the system currently dominated by a few people, with little understanding of science, technology and accelerating knowledge.

Climate change has been an interesting area of contention, as noted by the Duke study. It appears that politicians with free market based policies tend to disbelieve that it is happening. And those, with a passion for severely regulating everything to save the world, believe the world has already ended. This is an unfortunate side effect. Science and analysis should guide policy as forecasts and expectations are not religious. However, forecasts have significant uncertainty and policy alternatives often present flexibility – both in terms of timing as well as choices. Scientists, heady with data and modern tools, have all but sure that the fate of the blue planet is sealed. However, policy is about trade-offs, something academics do not seem to appreciate well. And, any trade-off decision needs to avoid premature exercise of options based on known (but uncertain) data, when waiting is often optimal for policy actions.

It is a conundrum – we have ignorant politicians attempting policy and dogmatic scientists, crying wolf. Neither is likely to get it right.

(1) Denying problems when we don't like the political solutions. Published: Friday, November 7, 2014 - 04:43 in Psychology & Sociology. eScience

Thursday, November 6, 2014

Awakening by exercise

Exercise has been in the news – as the only non-medical route to avoid diabetes and cardio-vascular disease. It appears to be a good idea, especially in moderate amounts. But a healthy body without a healthy mind is value destroying for the individual and society. Not to be left behind, video games and other mind-exercising technology sites have been gearing up to awaken the little old grey cells. But they all seem to be missing the bigger picture.

The human brain, an energy hog and complex, does not exercise by playing games or solving puzzles on the computer screen. There is a lot of power behind the veil and most often, the organ simply retires to boredom. By feeding it prescriptive education and jobs that take nothing, society has been playing a losing game. The human brain has, substantially detached from the status-quo, for the problems fed to it seem so trivial and irrelevant.

Content, questions with the scope of the universe strategically and the world, more tactically, could possibly awaken the sleeping organ. More importantly, an advancing society could stitch live brains together to rediscover imagination, a feeling that has been dead for long.

Thursday, October 30, 2014

White alpha

A recent study from Michigan State University seems to prove what the Chicago school has been asserting for nearly half a century. Although the study claims to be “first of its kind,” the conclusions have been known to most academics for long. There is no alpha – risk adjusted excess returns – anywhere. And, by implication, a blind man, a high flying hedge fund manager or a super-smart financial advisor has an equal chance of making random alpha in the market.

Mad and fast money experts on financial TV have been perpetuating a farce. The only alpha they make is the money they get paid by the producers of the show. That is indeed, alpha - if they spent that time trading, they would have lost money and alpha, if they knew what that meant. A trillion $ sloshes around the markets – idiots trading back and forth – as if it means something. Then, there are tens of thousand of “financial advisors,” most not qualified to advise anybody and the rest helping to destroy wealth systematically, in fees. The financial services industry destroys wealth to that extent that if the industry is made illegal, the economy will grow by an additional couple of percentage points.

Value is only created by real companies, innovating and creating new products. Those, trying to monetize and trade on them, simply destroys value. And, those who “advises” the common woman on how to invest, destroys more.

Friday, October 24, 2014

Stating the obvious

A recent study that states that controlling Ebola in West Africa is the most effective way to decrease international risk (1) seems to state the obvious to most straight thinking humans. Hopefully, this study did not burn too much money proving what could have been obvious to any high school freshman in her sleep.

Yes, it is indeed better to stop Ebola in West Africa. However, it does not seem to have sunk in with the less endowed – politicians and celebrities. Ebola, the most incompetent virus, unable to transmit without physical contact and exchange of fluids, has been riding high. It has travelled far and wide, without paying airfare. It has made a joke out of those living in the most powerful state in the country, led by the incompetent. It has killed humans after they showed up for treatment in hospitals. And they have successfully jumped from human to human, apparently using protective gear.

Humans are, indeed, prone to dramatics – and more stupid than they could ever imagine.

http://esciencenews.com/articles/2014/10/21/controlling.ebola.west.africa.most.effective.way.decrease.international.risk.paper

Friday, October 17, 2014

Are we there, yet?

Recent news from Lockheed Martin that their engineers may have successfully tamed small scale fusion and practical generators, the size of a truck, could be available in a decade, is the type of discontinuity that the world has been craving for decades. The famous Skunk Works, may have done it again. Although academics are skeptical, if true, it will substantially change the game.

Humans, notorious for destructive tactics at the expense of strategy and damaging anything they touch, may still pull a rabbit out of the hat at the nick of time. Misguided environmentalists and compassionate politicians have been filling the airwaves with noise, with no benefit. The solution has always been zero cost energy and if the Lockheed engineers are right, it will mark one of the proud moments in the history of humanity. Now, they could afford clean water, air and environment, at no cost to society. They could shield the blue planet from countless projectiles from space. They could create airplanes that stay afloat and seaplanes that stay underneath for years – measuring, studying and rectifying the blue dot in the unimaginable void. They could print food, clothing, shelter and medications for anybody on demand. They could, possibly, bring happiness back to earth.

Engineers, behind thick glasses and adorable pocket protectors, may still save the world.

Wednesday, October 15, 2014

Humanity, –0.1?

Ebola, with low transmissibility and dormant, delegated to the guts of fruit bats, has been creating havoc world over. It has been a wild ride for the virus, simply unimaginable to them. They were nearly done – they needed a human to come in touch and then many more as they overwhelm the original host. It required meticulous planning – as transmission is not easy. They could not move by water, air or anything else – transmission required physical touch of the bodily fluid emitted by the infected. And they have done it.

The 7.2 billion simply stayed back and witnessed as the incompetent virus spread. The solvers of problems and hoarders of wealth – from Seattle to Omaha and San Francisco to Mumbai – have been silent. As they bought and sold stocks and provided nets to those who could be at risk of Malaria, they simply forgot the few in West Africa – as they have been circumvented by not only the virus but also the rulers of the land. As their organs failed and fever overcame any remaining senses, they simply vanished from the face of the Earth. Humanity has shown its hand –they remain to be colloquial and local utility maximizers. Healthcare workers, without boarders, remain to be the only shining beacon – something with flickering hope.

Humans have shown their depth and it is as shallow as a cup of tea.

Monday, October 13, 2014

Erasing bad memories

A recent article in the journal Neuron describes how bad memories could be erased in mouse models using light. This has broad applications in humans if the experiment could be extended to complex systems. TBI (Traumatic Brain Injury) and PTSD (Post Traumatic Stress Disorder) - both carry similar markers in the brain.If these could be erased, that has beneficial impacts on humans suffering from such CNS disorders.

The brain, source and cause of most human strife, remains to be largely unexplored by modern science. Memories, responsible for most pain for humans, have been left untreated as medicine follows complex brain altering mechanisms in the treatment of diseases. The ability to selectively erase memories could usher in a new era in the treatment of CNS disorders. A massive and misunderstood organ, the brain, holds the keys to happiness and diseases in human systems.

Memories – with a negative skew of disutility – are likely bad for humans. The ability to erase them could substantially enhance individual and societal utility.

Sunday, October 12, 2014

Pipe dreams

A recent article in Physical Review Letters claims a novel form of “dark matter” known as “flavor-mixed multi-component dark matter.” The authors, who ran a large number of simulations on a super computer, conclude that they have successfully solved many of the vexing questions in the standard model – such as, “what exactly is the 80% of the stuff out there that shows gravity and if we do find it what may cause them not to collapse?.” These appear to be questions that a child will ask if faced with the status-quo theory. Adding a few flavors and components seem to show that the standard model is in fact “correct” and the “exotic dark matter,” is a bit more exotic than initially thought.

The amount of time, money, effort and computer time wasted to prove an incorrect framework that does not explain most of the observational data is alarming. This is a very rich area for physicists, mathematicians and engineers, as a complex and likely incorrect theory provides significant empirical flexibility to invent particles, fields and flavors. Academics, driven by the need to publish papers, are likely to simulate more garbage to prove what has been stated. In the process, they move humanity away from knowledge. There is little difference between fiction and current research in high energy physics.

Common sense, which has been “quantum evaporating” for a century, has to return to this field for it to move forward. This is unlikely to be aided by faster computers or wasteful grants.

Thursday, October 9, 2014

Quantum AI

A recent article in the Journal of Physical Review claims that the application of quantum mechanics driven algorithms can substantially improve the performance of robots and other automatons that use artificial intelligence. This appears to be in the right direction as it is known for a while that the brain itself is a quantum computer. Mediocre and linear attempts at artificial intelligence by leading engineering schools have brought ill-repute to the field of AI for long.

The “new idea” brings into focus the need for robots to be flexible – able to learn and act descriptively, not prescriptively. Computer behemoths and computer science departments in universities have been battling with software and hardware constructs, totally useless for AI for many decades. To make matters worse, they showcase stupid applications such as Siri and Jeopardy winning Watson as examples of AI. These ideas have kept a generation of computer scientists bottled up, chasing irrelevant and incongruent ideas, in an attempt to create intelligence artificially.
Perhaps, we are approaching the exit of the dark ages of computing, held hostage by incompetent companies. The idea that intelligence is dependent on both qualitative and quantitative information come as a shock to the traditionalists, but much has been written about it. For any straight thinking person, it should be clear that intelligence cannot be coded in conventional languages and run on conventional computers.

Search companies and space administrations run by the government are unlikely to advance this field. It will require creative and uninhibited minds of the next generation, less worried about world domination.

Wednesday, October 1, 2014

Mathematical segregation

Recent research from Duke, that seems to confirm earlier studies, shows that human habitats tend to get segregated if the density exceeds certain threshold. They find that cities are more likely to get segregated along racial, ethnic and other dimensions, when the proportion of occupied sites to total available sites exceed 25%. They argue that mathematical simulations show such a result. Perhaps, a simpler explanation for the finding is that available space and associated options allow the inhabitants to delay the decision to segregate. As density increases, they are forced to exercise the option to segregate as further delay reduces their value. In either case, it is instructive to note that the need to segregate for humans is as fundamental as food and sex. The timing of their segregation decision is simply value maximizing and market based.

It seems humans, shackled to their clan legacy, are unable to break from the hard wired needs to be close to their own kind and far from the rest. What is ironic is that for most of their history – from 100,000 years to 10,000 years – the characteristics they used to identify clan membership included know-how and family ties. Modern humans, while maintaining the desire to segregate, have found much less substantial aspects to segregate – such as the color of skin and political affiliations. And recently, they have overlaid that with even more meaningless attributes – such as religion and location.

Those holding out for a more peaceful world, should understand that humans are ill-equipped to rise above the legacy they have been handed. In an attempt to rationalize it, they seem to have made it worse.

Tuesday, September 30, 2014

Per capita knowledge

Switzerland and Sweden, both with more than 2 dozen Nobel laureates, producing over 30 prize winners per 10 million population stand in stark contrast to India and China, returning about 0.07 on the same metric. Some may argue that it is a denominator problem but with China and India showing less than a dozen winners, it is tough to argue that it is a size and scale problem. Furthermore, Nobel prizes in areas such as Peace and Literature commanding an equal share of those in hard sciences, one cannot put this down to lack of resources and equipment.

Per capita Nobel prizes is an interesting metric as fundamental advances could be made by paper and pencil or by sheer imagination. Thus, it normalizes the technology advantages that could be attributed to advanced economies. With the US, Canada and France at only 1/3 of the rate of the leaders, it is clear that access to resources and technology cannot explain the disparity. One has to look into educational systems and the prevailing attitude to fundamental innovation in the culture as possible attributes that influence this outcome. Lack of freedom in political systems, due to either autocracy or religion, could be another common factor pointing to underperformance.

Humans, 7 billion near clones, segmented across the world, show dramatic differences in the stock and flow of per capita knowledge. The laggards could learn a lot from observing those who do it better.

Sunday, September 28, 2014

Quantum chemistry

Recent news from Princeton University that describes a technique that can closely approximate lattice energy of molecules may open up new avenues for pharmaceuticals research. Innovations at the boundary of Physics and Chemistry have been slow, primarily due to the lack of flexibility in scientific disciplines that tend to prefer colloquial and incremental improvements to traditional methods. The Princeton team shows how the crystalline form could be predicted using emerging ideas from quantum mechanics. Such processes could be fully incorporated into computational chemistry. With the availability of vast computing power and software technologies, this innovation could usher in the next wave of productivity in pharmaceutical discovery.

Generation gap has been value destroying in most disciplines. Doctors use stethoscopes and engineers use calculators, even though these technologies have been made obsolete for many decades. Similarly, in the labs, once investments are taken into a technology, companies, unaware of the concept of sunk costs, tend to use them forever. In a regime of accelerating knowledge and innovation, the inertia of past knowledge has become exponentially more costly for every discipline, company and individual. Ironically, in the modern world, ignorance with flexibility is a lot more valuable trait than knowledge based on the past coupled with a resistance to change.

Incrementalism is a disease of the past. For the present, looking backward is likely most costly.

Thursday, September 25, 2014

Vanishing singularity

A recent hypothesis by physicists at the University of North Carolina contends that black holes simply cannot exist – mathematically. It is a bit too late – as Nobel seeking scientists elsewhere had all but accepted black holes to be at the center of most galaxies. More creative ones had speculated that black holes lead to other galaxies and provide easy avenues for time travel. This is a constant reminder that theories that lead to inexplicable outcomes, however well they fit some other observations, are not theories at all. They are fancies of grown men and women, constantly seeking meaning for the universe and their own careers.

Black holes have tickled the fancy of many just as the concept of infinity. The possibility of a phenomenon that apparently demonstrates division by zero in practice provided immense flexibility for researchers and scientific journalists alike. As they scorned the “religious” as ignorant, they hid their own massive egos under mountains of illiteracy. Competing theories disagreed – but competing scientists did not, for it was easier to prove the existence of the unseen than reject the establishment. The possibilities were endless – black holes connecting with worm holes, bending space time like a child playing with rubber bands. But,  little did they know that the child had a more complete perspective than their own, weighed down by the pressures of publications and experiments under the dome of heavy steel.

As the singularity evaporates with the radiation and associated mass, perhaps we could return to a regime dominated by Occam’s razor.

Sunday, September 21, 2014

Quorum disruption

A recent paper in Chemistry and Biology describes how certain bacteria use small molecules to “quorum sense,” essentially coordinating an attack on the host. The study also demonstrates how minor tweaks in the concentration of these chemicals could substantially disrupt the “attack signal” that improves the efficiency of the pathogenic bacteria. In the era of declining effectiveness of antibacterial agents, this seems like a favorable direction for research.

Prevalent lack of innovation across the life sciences industry has kept a lid on tangible improvements in the quality of life for humans. Most of the current knowledge on how to attack pathogens has been stale for many decades. In a predictable fashion, the industry has turned into creating bigger “hammers” and if size does not do it, a cocktail of antibacterial agents to quell the infection. This brute force approach has led to the less intelligent micro-organism to simply fall back on mutations to get over what has been put in front of them, incrementally. There is no doubt who will win this war as bacteria has over 3 billion years of experience – and they are fully capable of upsetting incremental approaches to battle it.

Humans, arguably proud of the massive organ they carry on their shoulders, may have to get more sophisticated to stay ahead – taking yesterday’s technology and making it bigger is not going to do it. Disrupting communication signals seems like a better approach.

Wednesday, September 17, 2014

Profit maximization in societal design

A recent study in the Journal of the Institute for Operations Research and the Management Sciences (INFORMS) (1) concludes what is obvious to some. They prove something that could be counterintuitive to most who do not care for economics and those who mix social preferences with economics and assume without proof, such a mixture leads to good policy and better societies.

The study looks at the automotive repair market and analyzes if the repair persons behave ethically and have social preferences, as opposed to purely profit maximizing businesses (e.g. free markets), whether society would be better off. The answer to a large swath of the population should be a resounding No – as a profit maximizing service provider seems like a bad person. In an environment where service providers are driven by ethical and social preference considerations, the study shows that the prices will rise – as they will tend to charge higher but uniform prices to everybody. If so, customers, who do not face price differentiation, will be forced to a higher uniform price, on average. In this case, analytical models show that society, as a whole will be worse off. In a society that contains both ethical and profit maximizing providers, the latter will quickly reflect the higher uniform price when it is convenient to them and reject service to those with higher costs. In a system with only profit maximizing providers and unconstrained transactions, market clearing prices will reflect the provider’s marginal cost, maximizing societal welfare.

Apparent common sense and social preferences are not necessarily good guiding principles for policy. Free markets and profit maximizing decision-makers, generally, push complex societies to higher welfare. The study correctly warns regulators and policy-makers to study social welfare issues before enacting uniform price policies.

(1) INFORMS study shows social welfare may fall in a more ethical market Published: Monday, August 25, 2014 - 15:41 in Mathematics & Economics, (e) Science News

Monday, September 15, 2014

Redefining AI

Artificial Intelligence (AI), an artifact of the 80s, has been directionless. This is partly due to the overuse of the term and assigning “intelligence” to such common place activities as search, rules based logic and machine learning. Recent news that researchers at North Carolina State University has been able to use “AI” to predict the goals of a player in a video game using machine learning, highlights the idea that the term AI is poorly understood. It may be time to redefine it more precisely so that claims of progress in this area could be tempered.

If AI is about intelligence – human intelligence – then most contemporary attempts at replicating it has failed. If AI is about naive search of large data spaces for patterns or the use of classification, clustering or rules based logic on “big data”, then AI will continue to flourish with no innovation in knowledge or software. In this vein, all AI needs is raw computing power. The current leader, Watson, is a case in point. Packing silicon ever closer together and massively parallel processing set logic channels, is not AI – even though it may be able to find the answer to any vexing question asked in trivial games. Machine learning – the latest fad discovered by business brains, without understanding that it has been happening for many decades – has nothing to do with AI - it is just raw application of mathematics, afforded by cheap memory and cheaper computers. What the AI crowd seems to be missing is that, none of these – ability to create models from data, ability to guess answers to trivial questions, ability to predict goals – is about intelligence. It is about the inevitable marriage of computing power with established mathematics.

Human intelligence, however, is not mathematical, even though every scientist and engineer would like it to be. This is why the preeminent engineering schools in the world – in the East, West and in the middle, cannot make any progress in this area. Soccer playing robots and self driving cars, unfortunately are not intelligent. They are unlikely to imagine string theory or appreciate art. Considering intelligence to be mechanical and mathematical, is the first problem. Lately, it has been shown that the hardware itself, the human brain, is a quantum computer. Feeble attempts at replicating this hardware phenomenon is not going to get humans any further in AI because fundamental issues remain in understanding the operating system and applications that run on it.

Artificial Intelligence is meant to represent complete replication of human intelligence. It is not parroting answers in Jeopardy or predicting behavior based on historical data. Humans may be giving themselves less credit by assuming that the crude machines they build, are in fact intelligent.

Saturday, September 13, 2014

Analytical dogma

A recent study published in the Journal of American Medical Association by Stanford researchers showcases an amazing statistic – In the last 3 decades of clinical research, there has been only 37 published re-analysis of randomized clinical trial data. Of this sample, over one-third came to conclusions that differed from the original analysis. An insular culture, unaware of accelerating technologies elsewhere, has been left behind with antiquated tools and techniques. And, resistance to re-analysis is only one of the symptoms of a prevalent disease in the industry, that sticks to dogma and tradition. A regulatory regime that aids such behavior is not helpful either.

It is instructive to note that in the studies that showed significant deviations from original conclusions in the reanalysis of the data, the researchers used different statistical and analytical methods. Even changes in hypothesis formation and the handling of missing data seem to have made a difference to the conclusions. Furthermore, the new studies discovered common errors in the original publications. Definition and measurement of risk are important determinants of eventual conclusions – and in many industries, the measurement and control of risk have substantially progressed to higher levels of sophistication. The researchers point out that sharing of the data and the use of people and analytical techniques from other domains may overturn many of the conclusions, currently held sacrosanct.

Scientists, departing from the spirit of science, in which sharing of data, knowledge and techniques across experts and domains are the norm, do damage not only to themselves but also to the industry. Regulators, steeped in methodologies and SOPs that are antiquated and irrelevant, just aid persistent incompetence.

Tuesday, September 9, 2014

Holographic

A recent experiment at the Fermilab investigates if the apparent 3D space that surrounds us is a hologram.  The idea that uncertainty envelopes not only location and speed but also space itself is mind bending to say the least. If the universe’s ability to store information is limited, then space itself becomes quantized with far reaching implications.

A holographic universe, if proven, could reduce the complexity and put many of the current theories out of commission. It is unclear if Physicists would really like such an outcome – most are used to the expanding particle zoo, convoluted strings and deterministic views of the evolution of space –time. If space is fundamentally uncertain, as speculated by Hogan and Meyer at the University of Chicago, then the status-quo views of space-time need to rewritten.

The direction of knowledge toward simplification is apt even though it does not encourage heavy machines, particle smashing and ignorance building.