Resampling Methods
When I came across this statement ," Bootstrap method has now been hailed by an official American Statistical Association volume as the only “great breakthrough” in statistics since 1970 “ , I was humbled by the fact that I had never come across this method earlier.
The only kinds of bootstrapping I am aware of is
- Bootstrap a venture :)
- Bootstrap method to build yield curve using a set of fixed income instruments.
I came across bootstrapping as a method to find out the holding period of arb trading strategy . Apparently it is used widely in calculating the holding period of a stock/stock pair using one single realization. Naturally I was curious to know more about it and stumbled on to this beautiful online resource Resampling - Julian L Simon
If you can spare 10-12 hrs on this online resource, I am certain that you will see that resampling methods are intuitively far superior way of dealing with statistical problems as compared to fischerian formulaic non-intuitive approach. Overall the learning from the online resource has been good. It has motivated me to look in to one of the popular books on this subject : Resampling Methods
My takeaway : If you do number crunching for rozee roti,resampling methods would no doubt enhance your intuition about statistics . Afterall, the difficulty with statistics is not with the math, but with the kind of thinking one needs to do , in order to cull out patterns.