Scientists Develop Financial Turing Test
I have a healthy dose of skepticism on data and statistics from the government and private sector. Most of the time, they are fudged or outright fabrication.
Well, scientists have devised an online test that is being touted as the “financial turing test.” Anybody can sign up and take the test on their website.
“Various economists argue that the efficiency of a market ought to be clearly evident in the returns it produces. They say that the more efficient it is, the more random its returns will be and a perfect market should be completely random.
That would appear to give the lie to the widespread belief that humans are unable to tell the difference between financial market returns and, say, a sequence of coin tosses. However, there is good evidence that financial markets are not random (although they do not appear to be predictable either).”
I am not sure what kind of impact this Financial Turing Test will have on the economy or investment community.
If you pass the test, does that make you qualified to distinguish between real and randomly generated financial data? Can you tell that the market is functioning efficiently or approaching a bubble or crisis?
Perhaps what this financial turing test proves is only your pattern recognition ability…
Paul is a geek who shares his thoughts on technology, gadgets, social networks and football in this blog. Stay in touch with his updates by subscribing to the RSS feeds or Email. Thanks for visiting Seventoten and leaving a comment. To change this standard text, you have to enter some information about your self in the Dashboard -> Users -> Your Profile box. 
