Sunday, September 8, 2024

Solutions

 

1, 2, 3

1-2-3, oh, that's how elementary it's going to be C'mon, let's fall in love, it's easy
Like takin' candy from a baby

1-2-3 is elementary, NOT deterministic.

I am a fan of three. For example https://dbeagan.blogspot.com/2024/02/three.html. A system  has three part: 1) an input; 2) a process; and 3) an output. Just because an input is deterministic, it does NOT mean that the process has to be deterministic, or the output has to be deterministic. For example take a coin. It has only two sides. What could be more deterministic than that. Flipping that coin is random NOT deterministic. The outcome is NOT deterministic either. It is 50% the coin is heads AND 50% that the coin is tails. So while the input was 100%, a coin,  the output AND the process are random.

When the input and process are combined into a scenario,  that also does not mean that the scenario has therefore become deterministic and therefore the output is deterministic. It still depends on the process. If the process was not deterministic, the output won’t be deterministic because the scenario can’t be deterministic. If a process is random, then it has a variance of more than zero. Goldilocks is a solution when the process is deterministic: not too hot, and not too cold; not too hard, and not too soft; just right, halfway between the two extremes. But if a process is random, its variance is NOT zero, then the output can not be Goldilocks, and Nash Equilibriums govern. At equilibrium the solution is 5/6 of the variance, σ2, which is identical to the mean, μ, plus two times the square root of the variance, σ. Only when the variance is zero, will the solution be the mean, just right.

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