Tuesday, August 26, 2014

Stochastically Deterministic

The other day i was reading about these unmanned / automatic / driverless cars. They are supposed to run without any human intervention.  Thats an awesome idea. We will not see any drunk and drive accidents, machines can multiplex i.e text and drive ... World will not be the same. But every great invention comes with a price. Apparently the insurance industry has raised eyebrows on how to account for insurance in that scenario. The whole insurance and risk management industry strives on the random behavior of humans and their outcomes. So if machines take over , then the question of randomness is ruled out. Sometimes these randomness or the stochastic nature of events make things more interesting. With more and more predictability when we think we have brought order to the world we have actually not .... What say ?? 

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