Rosio Pavoris

I finished these ages ago, but I never got around to reviewing them.
John Allen Paulos is the guy who wrote Innumeracy, as I’m sure you’ll remember.

Once Upon A Number: The Hidden Mathematical Logic of Stories talks about the relation between statistics and storytelling, in a rather loose sense. He discusses the difference between information and meaning, and how logic and language hang together.
It’s hard to describe, obviously, but quite entertaining to read. It’s sprinkled liberally with random math problems, and along the way he also talks about how probability affects religion, which was a nice unexpected bonus (Paulos, like most intelligent, educated people, is an atheist).

The book’s only about two hundred pages, but it’s definitely worth picking up. It’s not as good or important as Innumeracy, but still quite awesome.

A Mathematician Plays the Market (one edition is titled “A Mathematician Plays the Stock Market”, for some reason) is a completely different book. It describes Paulos’ real-life experience with the stock market, and how he lost a significant sum of money in the WorldCom debacle in 2002, due to a combination of poor planning, bad luck, and ignoring his own advice.

He explores the psychological driving forces behind human decision-making when it comes to probability in general, and how they apply to the stock market itself.
Along the way, he explains some things about how the stock market itself works, and why stock market analysts are a boil on the face of society, and economists are mostly idiots.
Well, maybe he didn’t intend to say that, but it’s quite clear from his writing.

Of course, there are the usual mathematical problems as well, but significant parts of them (as well as his plot suggestion for a movie centered around probability) have just been lifted from Once Upon a Number, which was disappointing.
Still, it’s a very interesting book, and it’s one that should be required reading for anyone planning on buying some stock.