Math, Data or Hype Driven?

Abstract

An old story tells about a group of people who encounter an elephant in the dark and touch on of its parts. Each person, given they know only what they can feel, comes up with a different view of what an elephant is. I was reminded of it by the three books reviewed here. Each of the three book is written about the part of the problem they know.

The Numerati views the business world as being quants who build models that lead to policies and actions. Although the book does not explain the models to you, it talks about the results and the dangers. Data Driven focuses on the data, its quality, and its marketability. Hype Driven observes that markets are inefficient with the result that a new technology (think PC's) at first outperforms its initial expectations, then a reaction sets in for a period of time that drives sales down, after which it grows again but at a slower rate. The three books contain interesting kernels but each is limited by its worldview.