4min snip

EconTalk cover image

Luca Dellanna on Risk, Ruin, and Ergodicity

EconTalk

NOTE

How to Prevent Local Failures

Local failures may occur even if the system functions well on average, and it is crucial to prioritize preventing them/nCapacity to adapt and redistribute load can help prevent local failures in systems/nVariance is important to measure in statistics to avoid catastrophic outcomes in the left hand tail/nAssessing quality of performance solely based on average numbers may not accurately reflect the actual performance

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