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Rothbard on statistics

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JAlanKatz posted on Sun, Mar 22 2009 5:38 PM

http://philsci-archive.pitt.edu/archive/00003864/01/J._M._Keynes_and_L._von_Mises_on_Probability_(pdf).pdf

This paper discusses, on pages 6-7, Rothbard's comments on statistical inference.  He says that the theory of statistics rests on the assumption that all samples will be distributed on a normal curve.  

How is it possible to take this as anything other than a mistaken understanding by Rothbard of the Central Limit Theorem?  That theorem does not say that all samples are distributed normally, but rather that for any non-normal distribution, the distribution of the averages of various groups can be made to approach as closely to normal as desired.  

Furthermore, the CLT is not an assumption, as Rothbard said, but a theorem, logically derived from the axioms of probability theory. 

I don't want Rothbard's statement to be absurd.  Can any mathematicians think of an interpretation of Rothbard's words that makes sense?

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its not really addressing the applicability of statistics to understanding economic issues, but its an itneresting take from Rothbard.

http://mises.org/rothbard/statistics.pdf

Where there is no property there is no justice; a proposition as certain as any demonstration in Euclid

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  Mises seems to touch on this point in Epistemological Problems in Economics:  you have to define an ends to which the action is attempting to obtain.

Do you know where in EEPE he treats of it?

Freedom of markets is positively correlated with the degree of evolution in any society...

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jtermine replied on Tue, Mar 31 2009 10:24 PM

Jon,

I'm still looking for it. 

Try this for now:

http://mises.org/journals/qjae/pdf/qjae10_1_1.pdf

 

 

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Thanks. I used the argument in one of my essays. I just wanted to know if there's a source for it I could use, but it seems clear enough as you articulated it.

Freedom of markets is positively correlated with the degree of evolution in any society...

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