Volume 2 – Handbook #II: Glossary & “Terms of Art” Definitions – Page 8

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Please read the “Pinned Post” at the top of this Substack’s Home Page, and titled Why Use Public Peer-Review to Write a Book? - “See for Yourself”.

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This post presents Page 8 for the “Terms-of-Art” definitions as shown below:

Volume 2 – Handbook #II: Glossary & “Terms of Art” Definitions – Page 8

Expected Value

-         Also known as the Expectation, the Average, and the Arithmetic Mean. “Ergodicity Economics” shows that the “Expected Value” has an upward bias that makes it a representation of collective outcomes rather than the typical individual outcome over time.

Expected Utility

-         Daniel Bernoulli’s 1738 solution to the limitations of “Expected Value” as a decision criterion. Similarly to the “Expected Value”, it represents an “Ensemble Average”, and does not reflect accurate individual outcomes in “Small Worlds” risk-based problems with high variance, or in “Large World” uncertainty-based problems. This makes “Expected Utility” a “Maintenance Program” for “Expected Value”.

Expected Value Optimization

-         One of the three braids in the historical timeline from Volume 1 - Part IV: Making Good Investment Decisions, and the default perspective in the Financial Industry. See “Growth Optimal Solutions” as well “Client Centric Planning”.

Exposures

-         Measurable characteristics of a “Task Environment” that impact an individual in the context of “Ecological Rationality”.

Extensions of Man

-         Expression from Marshall McLuhan (1964) book “Understanding Media” that describes all filters of human perceptions, starting with language, up to including all forms of technology that mediate, thus alter, our “Predictions”, “Motions”, and  emulation of the real world

False Reconstruction

-         Standard practice in the Theory of Conjuring to distract an individual’s attention from seeing the “Methods” behind the “Effects”.

Fast & Frugal Heuristics Program

-         Gerd Gigerenzer’s “Repair Program” for the Heuristics & Bias Program (i.e. Behavioral Economics) that replaces its limiting embrace of  “Small Worlds Rationality” with “Ecological Rationality” in order to develop a computable, algorithmic-based approach to decision-making in the “Large World”.

Fear (Fear, Anger, Sadness, Happiness)

-         Rachael Jack’s narrowed list of primary emotions based on video data-capture techniques of facial micro-expressions in response to a triggering stimulus. Emotions prioritize “Observations”. These four emotions frame up a mostly cautious to negative evolved context for the filtering of “Observations” into “Predictions”.

Feet of Clay

-         Metaphor for the foundational “Axioms, Assumptions & Hypotheses” behind research papers, as contrasted with theories that add epicyles on top of epicyles in the context of often unexamined, or forgotten “Axioms, Assumptions & Hypotheses”.

Figure (The Figure & the Ground)

-         As famously illustrated by Edgar Rubin with his iconic, ambiguous vase/face pictures, human “Perceptions” focus on one thing at a time, toggling between the “Figure”, and the background of the perceptual field - the “Ground”.

Firefighters

-         Metaphor from Malcom Kendrick’s 2019 book “The Clot Thickens” to describe situations where confounding, or colliding variables lead to theories that confuse the positive (firefighters) with the negative (arsonists).

“CTRI by Francois Gadenne” writes a book in three volumes, published at the rate of one two-pages section per day on Substack for public peer-review. The book connects the dots of life-enhancing practices for the next generation, free of controlling algorithms, based on the lifetime experience of a retirement age entrepreneur, & continuously updated with insights from reading Wealth, Health, & Statistics (i.e. AI/ML/LLM) research papers on behalf of large companies as the co-founder of CTRI.