Tuesday, November 15, 2016

Monte Carlo sequence generators that do Ito's calculus and the Lifetime hypothesis along with Ethereum

I think that this is what we are about. The finite probability graph, with nesting probabilities, are segmented semi-random sequences, used in Monte Carlo integrations all the tim.  But he conditions are such that directed convolutions of two graphs will create a second generator, and the second is validf as long as the operations on distributions are contracting, hey generate a surplus.  Bit error leakage is almost always smaller than the distributions are 'compressed', they generate a surplus.

I got to thinking abut this because one of Thoma's regulars is doing a series on Monte Carlo.   The rule is that convolutons of graohs have to flatten the tails a bit relative to the input distributions.  If that is the case, hen we get a sort of  valid quantization.

Liker my corbner store owner, been in business years, while running a Monte Casrlo pit.  How? He makes sure to generate a surplus accumulation of inventory, at all time, as insurance against fat tail.  He can sell he surplus at cost, ready cash, if it grows large.  So, the in store inventory, a sharper probability distribution, and more balance, than either the inventory arrivals and customer arrivals.

It is not really fixed price commercial, I think that semantic may be wrong.  He really runs on a bit error conditions, he takes what he needs to support the home.  But he is forcing the bets, in the store pricing down, as needed to move surplus.

But, that the agent, dealing with conditional likelihoods, almost naturally by keeping an intermediate inventory. His cycles on the graph include supplemental shipments from his own pick-up.

Back to Uncle Milt and the life time hypothesis

It is simply the restatement of Ito;s conditions. When the balance sheet is viewed as a descending probability graph, then its net of assets over liabilities must be zero or greater, it has to integrate to exist. Hence, there is a positive definite probability of an inventory surplus, which we model an accumulated bit error to the pit boss.

Who cares?
The store owner.  If he meet's Itos; condition, then he can say,"My gas bill is $200/month, generally".  That is, he is doing calculus with the statistical parameter 'mean'. Thew store owner is accumulating bit error sufficiently to cover the error when introducing a fictional variable of integration, he can price time. He maintains a region o surplus that allows him to use Newtons grammar.

Which is why Ito should have gotten the Nobel,

What isthis thing about Ethereum?

They enforce balance sheet law.  The balance sheet is really the disorder state of the constructing block chain, it is never really finished. Ethereum enforces the convergence of the chain, hence it will ultimately be the SEC, enforcing Ito's condition on all the balance sheets.   This means, making sure the Smart Cards really mean Amber when they say it.  That tells us that Ethereum needs trading pit, it needs to mark to market, compress the bets, and insure sufficient bit error accumulation to cover pit cycles. Pit cycles guarantee almost smooth pricing everywhere, because the probability graph is almost uniform in its disorder.

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