———————————————————————————————-<\/p>\n
In practice, bootstrapped models have many uses.\u00a0 The most scalable way to use these models are for informal analysis \u201cgut checks.\u201d \u00a0The human mind works in funny ways. \u00a0Simply having a parallel bootstrapped model to casually refer to can quell fears or heighten suspicions, potentially improving even a poorly codified decision-making processes.<\/p>\n
Performance benchmarking is another useful area for bootstrapped models.\u00a0 By removing random error, a bootstrapped model can serve as a useful benchmark for analyzing and evaluating decisions to figure out what went wrong (or what went right).<\/p>\n
Risk management is another interesting application.\u00a0\u00a0 Hard-coding checks to catch decisions that lie outside a predefined range of outcomes\/values (derived from bootstrapped models) is a direct way to catch exaggerated instances of an analyst\u2019s natural human inconsistency.\u00a0 And it\u2019s fundamentally different from a purely quantitative risk management methodology, since the measure of risk is a deviation from what a human would have theoretically done following her or his own approach.<\/p>\n
Finally, one could go all in and build fully employed decision making tools from bootstrapped models.\u00a0\u00a0 The resulting tools would loosely resemble a true quant model, though using a model in this manner still requires updating the model as the human perspective changes.<\/p>\n","protected":false},"excerpt":{"rendered":"
———————————————————————————————- In practice, bootstrapped models have many uses.\u00a0 The most scalable way to use these models are for informal analysis \u201cgut checks.\u201d \u00a0The human mind works in funny ways. \u00a0Simply having a parallel bootstrapped model to casually refer to can quell fears or heighten suspicions, potentially improving even a poorly codified decision-making processes. Performance benchmarking […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[18,6,9,20,13,21],"class_list":["post-59","post","type-post","status-publish","format-standard","hentry","category-tools","tag-bootstrap","tag-bootstrapping","tag-decision-making","tag-process","tag-random-error","tag-risk"],"_links":{"self":[{"href":"https:\/\/brianalward.com\/index.php?rest_route=\/wp\/v2\/posts\/59","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brianalward.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/brianalward.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/brianalward.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/brianalward.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59"}],"version-history":[{"count":2,"href":"https:\/\/brianalward.com\/index.php?rest_route=\/wp\/v2\/posts\/59\/revisions"}],"predecessor-version":[{"id":64,"href":"https:\/\/brianalward.com\/index.php?rest_route=\/wp\/v2\/posts\/59\/revisions\/64"}],"wp:attachment":[{"href":"https:\/\/brianalward.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brianalward.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brianalward.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}