You Have Reached Your Destination
Cautionary Tales with Tim Harford
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The Perils of Forecasting: AIG and the Algorithmic Misstep
This chapter explores the miscalculations in forecasting that contributed to the 2007 financial crisis, focusing on an insurance executive's struggle to uphold confidence in a volatile market. It highlights the dangers of over-relying on mathematical algorithms, illustrating how such dependence can lead to catastrophic consequences.
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