TimeEruption Waiting time Eruption

Long waitShort wait

Long eruptionShort eruption

Short eruption, short wait

Long eruption, long wait

Conclusion:The longer the eruption, the longer the wait for the next one

http://www.worldviewofglobalwarming.org

Carbon DioxideCO2

Temperature

Carbon dioxide concentration is related to the Earth temperature

http://www.seed.slb.com

Carbon dioxide concentration is related to the Earth temperature

http://www.greendiary.com

Possible solution:Control CO2 to affect temperature

?

Each asset can be described by the (possible) distribution of future values.

Asset A

Asset B

Portfolio (A+B) ?

http://www.e-stockpro.com

Some processes (and random variables) are connected

We can measure (or control) one process to predict (or control) another

Thus, we need to a) manipulate with several random variablesb) establish connections among random variables

60 80 100 120 140 160 180

4060

8010

012

014

016

0

Height vs Weight for women

Height, cm

Wei

ght,

kg

Data set “Davis” from package R

Outlier

60 80 100 120 140 160 180

4060

8010

012

014

016

0

Height vs Weight for women

Height, cm

Wei

ght,

kg

Data set “Davis” from package R

Kendall’s = 0.36

Pearson’s r= -0.59

Spearman’s = 0.49

Kendall’s = 0.57

Pearson’s r= 0.9

Spearman’s = 0.78

Old Faithful geyser data

Kendall’s = 0.01

Pearson’s r= 0.01

Spearman’s = 0.01

Non-monotone trend

-10 -5 0 5 10

020

4060

8010

0

X

Y