When we make decisions in life, the outcome normally provides direct feedback on the quality of the decision. For example, when choosing one apple over another because of a blemish turns out to be a good decision because the next customer found the worm ! However, in some domains– like the stock market – the feedback is trickier. In the short-term, the outcome is only a loose signal of decision quality. Engineers refer to such a system as having a low signal to noise ratio.
When we make decisions in life, the outcome normally provides direct feedback on the quality of the decision. For example, when choosing one apple over another because of a blemish turns out to be a good decision because the next customer found the worm ! However, in some domains– like the stock market – the feedback is trickier. In the short-term, the outcome is only a loose signal of decision quality. Engineers refer to such a system as having a low signal to noise ratio.
