The WealthAbility Show with Tom Wheelwright, CPA cover image

Noise Cancellation

The WealthAbility Show with Tom Wheelwright, CPA

CHAPTER

How to Distinguish Noise From Bias

Bias is like a major word right now that we are all concerned about. How do you distinguish noise from bias? It's very simple. The easiest way to distinguish it is to take the simple example of measurement. Your bathroom scale, on average, understates your weight by one pound an average. That random variation is the noise in the measurement instrument. And that the two add up. They may correct each other, but in absolute ms, they add up.

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