Saturday, June 11, 2011

4 Principles of Math

From a wise man who teaches economics, The 4 Principles of Math:

1. Something times zero is always zero: always pay attention to details and the weakest link(s)
2. Something times infinity is always infinity: always pay attention to low frequency but high severity (LFHS) events
3. Number of equations = Number of unknowns: you can have multiple solutions if there are more equations than unknowns
4. Wonder of Partial Derivatives: for complex problems, think of one thing at a time keeping everything else constant

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