Measuring Volatility, Blog 1 of 2: Statistical Riddles, Innovative Approaches, and Strength in Diversity

Take, for example, the results from the Federal Reserve’s 2015 Survey on Household Economics and Decisionmaking, affectionately referred to by policy wonks as “The SHED.” The 2015 survey re-asked a question from 2013 on income volatility, giving the more than 5,000 respondents the following three options to “best describe” how they or their partner’s income changes from month to month in the past year: (1) roughly the same amount each month; (2) roughly the same most months, but some unusually high or low months during the year; or (3) often varies quite a bit from one month to the next. 

 

Read more...

Leave a comment

Filtered HTML

  • Web page addresses and e-mail addresses turn into links automatically.
  • Allowed HTML tags: <a> <em> <strong> <cite> <blockquote> <code> <ul> <ol> <li> <dl> <dt> <dd>
  • Lines and paragraphs break automatically.

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.