The Millionaire next door (book review)

I finally finished reading “The Millionaire Next Door” by Thomas Stanley and William Danko. Early this summer at a garage sale in my neighborhood I got a copy  of the first original edition from 1996:

And I say “finally finished” because it was hard to go through it, I was a bit disappointed but I still got a few good things out of it (details towards the end). Continue reading “The Millionaire next door (book review)”

A neural network approach to college football rankings

The usual image of an artificial neural network:

What follows is a paper that I wrote in the Spring of 2001 for an “Introduction to Neural Networks” class that I took as part of my Masters degree. It is mostly a review of someone else’s paper on the subject, except that I wrote the network in Excel and ran it on that year’s football season games. Fun, fun. Continue reading “A neural network approach to college football rankings”

Your money or your life (book review)

Just finished reading “Your Money or Your Life” (1992), by Joe Dominguez and Vicky Robin:

I first heard of the book last year from the Mr Money Mustache site and then from many other sources in the financial independence movement. It turns out 2017 is the 25th! anniversary of the book, and the authors had been organizing seminaries and workshops for years before the book, so this “thing” has been going on for a long time.

Continue reading “Your money or your life (book review)”

McNemar’s test and Simpson’s Paradox (and the “hot hand” in basketball)

hot hand basketball

(I wrote this paper in 2007 for a Statistics class I took while trying to do a PhD. I am sharing it here for posterity.)

McNemar’s test is a non-parametric method used on nominal data to determine whether the row and column marginal frequencies are equal. It is applied to 2×2 contingency tables with a dichotomous trait with matched pairs of subjects.

Simpson’s paradox is a statistical paradox in which the successes of several groups seem to be reversed when the groups are combined. This seemingly impossible result is encountered often in social science statistics, and occurs when a weighting variable, which is not relevant to the individual group assessment, must be used in the combined assessment.

The paper evaluates the potential effect of Simpson’s paradox in McNemar’s test results and conclusions.

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The Seven Wastes of Personal Finance

Back when I was in cubicleland, in my last corporate job, I went through the very good Six Sigma training and certification program offered by my company: Green Belt, Black Belt and Master Black Belt. I did not get the MBB certification though, time was ripe to quit before I finished it…

Six Sigma, or continuous improvement,  had three “tracks” (three ways to go about it): “Variation” would be the traditional way of improving processes with stability and control, “Lean” is the waste-reduction way (and the subject of this post), and “Design” is likely the best and most difficult way because processes are optimal from their inception.

Lean strives to eliminate seven “types” of waste, the “seven wastes”. This technique was developed initially in Japan by Taiichi Ohno but now is learned and used everywhere.

seven wastes

Continue reading “The Seven Wastes of Personal Finance”