IFA.com – Sir Francis: Probability Machine, Galton Board, Randomness Simulator, Quincunx
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http://IFA.com – http://hebnermodel.com An explanation of how random beads falling through an assortment of pins, in the pattern of a quincunx, looks like monthly returns of IFA Index Portfolio 100 over 50 years, ending 2008. See http://ifa.com/portfolios/p100/ – IP100 is a simulated index portfolio, with data going back to Jan 1928. – The machine was named Francis, in honor of Sir Francis Galton who first created such a machine in 1873. (see http://www.ucl.ac.uk/museums/galton/statistics/quincunx.html ). Also see http://en.wikipedia.org/wiki/Bean_machine and http://en.wikipedia.org/wiki/Normal_distribution . Video is narrated by Mark Hebner. Also see http://www.ifa.com/portfolios/p100/#9 , also see Chart number 10 on that page.
From Wiki: In statistics, a random process is a repeating process whose outcomes follow no describable deterministic pattern, but follow a probability distribution, such that the relative probability of the occurrence of each outcome can be approximated or calculated. For example, the rolling of a fair six-sided die in neutral conditions may be said to produce random results, because one cannot compute, before a roll, what number will show up. However, the probability of rolling any one of the six rollable numbers can be calculated, assuming that each is equally likely.
Duration : 0:4:19
What About Exchange Traded Funds (ETFs)? – Episode #11
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http://thewaytobuildwealth.org
Someone wrote in and asked Ethan why he didn’t talk about ETFs in his episode on Index Funds. Here is Ethan’s response.
Links and more – http://www.thewaytobuildwealth.org/2008/12/what-about-exchange-traded-funds-etf-episode-11
Duration : 0:6:25