Woefully Neglected Evidence on Systematic Decision Making

////Woefully Neglected Evidence on Systematic Decision Making

Woefully Neglected Evidence on Systematic Decision Making

By | 2014-12-15T11:51:09+00:00 February 11th, 2014|Behavioral Finance|7 Comments
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(Last Updated On: December 15, 2014)

50 Years of Successful Predictive Modeling Should Be Enough: Lessons for Philosophy of Science

Our aim in this paper is to bring the woefully neglected literature on predictive modeling to bear on some central questions in the philosophy of science. The lesson of this literature is straightforward: For a very wide range of prediction problems, statistical prediction rules (SPRs), often rules that are very easy to implement, make predictions than are as reliable as, and typically more reliable than, human experts. We will argue that the success of SPRs forces us to reconsider our views about what is involved in understanding, explanation, good reasoning, and about how we ought to do philosophy of science.

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Yes, we are beating a dead horse…

 


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About the Author:

After serving as a Captain in the United States Marine Corps, Dr. Gray earned a PhD, and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. Dr. Gray has published four books and a number of academic articles. Wes is a regular contributor to multiple industry outlets, to include the following: Wall Street Journal, Forbes, ETF.com, and the CFA Institute. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.