Wednesday, September 20, 2017

The potential career link between big data and Wall Street

The potential career link between big data and Wall Street





It has been a long known secret that Wall Street will hire from fields like rocket science trying to find skills in modeling, advanced mathematics, and analysis. But did you know that there is now a job field that Wall Street uses to describe these data and mathematics driven analysts and that it is directly related to big data. Their called Quants. Thats short for qualitative analyst.

I thought that since we are getting close to the end of the semester, that I would share about this field as it uses big data in a very finically rewarding  career. It turns out that most large Wall Street investment firm will employ Quants as analyst who build models for understand markets, securities and instruments based on large data sets of past market performance. And these analysts have become so integral to Wall Street that graduate degree programs have been created specializing in training Quans. here are the links to two of these programs: the first is at South New Hampshire University (http://www.snhu.edu/online-degrees/graduate-degrees/MBA-online/quantitative-analysis.asp) and the second is at UC Berkeley (http://extension.berkeley.edu/spos/quantitative.html).

If you were to read the Wikipedia page that describes Quants, it has a marked similarities to many of the things that describe Industrial Engineers only it focuses solely on the uses of the techniques to build predicative and descriptive models involving different types of finances. Quants uses tools like Monte Carlo simulations, stochastic modeling, and time series analysis to inform investors and portfolio managers on different areas of finance.

Gavin posted last week about High Frequency Trading. The foundation of High Frequency Trading is models and algorithms made by Quants. I know that there are undergraduates in the class that are considering an MBA and taking their IE knowledge to the business world, so I thought that I would share this in case anybody was interested in a career using data mining in business. 

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Thursday, August 24, 2017

The Human Face of Big Data App

The Human Face of Big Data App


The Human Face of Big Data

We all know that technology is a major factor, if not the factor, when it comes to data mining. Massive amounts of computing power are required to process all of the information available to those interested. However, after recent discussions in class regarding social networking, it became apparent that it is difficult to retrieve all of this data without violating the privacy of users around the world. I for one know that I did not enter the world of Facebook, Twitter, or Instagram with the notion that my personal life would be available to anyone who knows how to use a computer. This got me thinking about volunteering certain information. If I could volunteer myself for observation during a particular amount of time, and then be left alone, I would be more than willing to lend my interests to the marketing tycoons of the world. I am sure for most of us that our cell phones are the best indicator as to what we are interested whether it be looking at browser history or the apps on your phone.

This leads me to the topic of this particular post. I searched for phone apps that indicate personal interests based on your phone activity. I stumbled across an app, available to Droid and iOS users. The app is called "The Human Face of Big Data." The app asks you to anonymously agree to submit data your phone collects on a daily basis. Users may also choose to answer questions. You may then be directed to similar users around the world that use similar data sources, essentially creating a doppleganger based on your data profile. The creators of this particular application were looking to provide more information on how humans live, work, and wind down. Initial data collection took place over one week last year, beginning September 26th and ending October 2nd. Ive attached the article Ive read on the application, and if anyone finds more on this particular app, please let me know. 


http://lifehacker.com/5946396/the-human-face-of-big-data-compares-you-to-millions-of-people-around-the-world

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Monday, August 7, 2017

The Hidden Biases in Big Data

The Hidden Biases in Big Data


Data and data sets are not objective; they are creations of human design. We give numbers their voice, draw inferences from them, and define their meaning through our interpretations. Hidden biases in both the collection and analysis stages present considerable risks, and are as important to the big-data equation as the numbers themselves.
For example, consider the Twitter data generated by Hurricane Sandy, more than 20 million tweets between October 27 and November 1. A fascinating study combining Sandy-related Twitter and Foursquare data produced some expected findings (grocery shopping peaks the night before the storm) and some surprising ones (nightlife picked up the day after � presumably when cabin fever strikes). But these data dont represent the whole picture. The greatest number of tweets about Sandy came from Manhattan. This makes sense given the citys high level of smartphone ownership and Twitter use, but it creates the illusion that Manhattan was the hub of the disaster. Very few messages originated from more severely affected locations, such as Breezy Point, Coney Island and Rockaway. As extended power blackouts drained batteries and limited cellular access, even fewer tweets came from the worst hit areas. In fact, there was much more going on outside the privileged, urban experience of Sandy that Twitter data failed to convey, especially in aggregate. We can think of this as a "signal problem": Data are assumed to accurately reflect the social world, but there are significant gaps, with little or no signal coming from particular communities.
While massive datasets may feel very abstract, they are intricately linked to physical place and human culture. And places, like people, have their own individual character and grain. For example, Boston has a problem with potholes, patching approximately 20,000 every year. To help allocate its resources efficiently, the City of Boston released the excellent Streetbump smartphone app, which draws on accelerometer and GPS data to help passively detect potholes, instantly reporting them to the city. While certainly a clever approach, StreetBump has a signal problem. People in lower income groups in the US are less likely to have smartphones, and this is particularly true of older residents, where smartphone penetration can be as low as 16%. For cities like Boston, this means that smartphone data sets are missing inputs from significant parts of the population � often those who have the fewest resources.
Fortunately Bostons Office of New Urban Mechanics is aware of this problem, and works with a range of academics to take into account issues of equitable access and digital divides. But as we increasingly rely on big datas numbers to speak for themselves, we risk misunderstanding the results and in turn misallocating important public resources. This could well have been the case had public health officials relied exclusively on Google Flu Trends, which mistakenly estimated that peak flu levels reached 11% of the US public this flu season, almost double the CDCs estimate of about 6%. While Google will not comment on the reason for the overestimation, it seems likely that it was caused by the extensive media coverage of the flu season, creating a spike in search queries. Similarly, we can imagine the substantial problems if FEMA had relied solely upon tweets about Sandy to allocate disaster relief aid.
This points to the next frontier: how to address these weaknesses in big data science. In the near term, data scientists should take a page from social scientists, who have a long history of asking where the data theyre working with comes from, what methods were used to gather and analyze it, and what cognitive biases they might bring to its interpretation.
We get a much richer sense of the world when we ask people the why and the how not just the "how many". This goes beyond merely conducting focus groups to confirm what you already want to see in a big data set. It means complementing data sources with rigorous qualitative research. Social science methodologies may make the challenge of understanding big data more complex, but they also bring context-awareness to our research to address serious signal problems. Then we can move from the focus on merely "big" data towards something more three-dimensional: data with depth.

Source: http://blogs.hbr.org/cs/2013/04/the_hidden_biases_in_big_data.html

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