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I don't understand why people accept certain formulas in statistics without a mathematical proof style argument. You see this a lot in statistics textbooks and unfortunately this spills over with the instructors who are themselves ignorant of where the formulas come from yet teach them anyway.

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    I'm not sure this is a question we can give a neutral answer to.2012-05-08
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    Maybe you're looking at the wrong books. A lot of those books are intended for people who want to focus on the applications and have no time to discuss theory...2012-05-08
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    ... or who lack the necessary background to deal with the theory.2012-05-08
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    Why should everyone who uses statistics know the proofs? People have made/saved lots of money by using formulae that work which they don't rigorously understand.2012-05-08
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    Yes, some people have made huge amounts of money by using statistical formulae in ways that are not justified. And if this eventually causes their employers to go bankrupt, no problem - the government will bail them out!2012-05-08
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    @RobertIsrael I think that was his point.2012-05-08
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    Ahh, wonderful option pricing...2012-05-08

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