Level Two Chaos

Level two chaos is chaos that reacts to predictions about it, and therefore can never be predicted accurately. Markets, for example, are a level two chaotic system. What will happen if we develop a computer program that forecasts with 100 per cent accuracy the price of oil tomorrow? The price of oil will immediately react to the forecast, which would consequently fail to materialise. If the current price of oil is $90 a barrel, and the infallible computer program predicts that tomorrow it wil...

 The Problem with Occam's Razor

In climate forecasting, the situation is more equivocal: the theory about the greenhouse effect is strong, which supports more complicated models. However, temperature data is very noisy, which argues against them. Which consideration wins out? We can address this question empirically, by evaluating the success and failure of different predictive approaches in climate science. What matters most, as always, is how well the predictions do in the real world. I would urge caution against reducin...

 Prediction VS Forecast

The official position of the USGS is even more emphatic: earthquakes cannot be predicted. “Neither the USGS nor Caltech nor any other scientists have ever predicted a major earthquake,” the organization’s Web site asserts.24 “They do not know how, and they do not expect to know how any time in the foreseeable future.” Earthquakes cannot be predicted? This is a book about prediction, not a book that makes predictions, but I’m willing to stick my neck out: I predict that there will...