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	<title>Comments for Commercial Intelligence</title>
	<link>http://haleyai.com/wordpress</link>
	<description>systems that know and understand and think and learn</description>
	<pubDate>Wed, 09 Jul 2008 05:39:02 +0000</pubDate>
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		<title>Comment on A Common Upper Ontology for Advanced Placement tests by szisk</title>
		<link>http://haleyai.com/wordpress/2008/04/18/a-common-upper-ontology-for-advanced-placement-tests/#comment-282</link>
		<dc:creator>szisk</dc:creator>
		<pubDate>Mon, 07 Jul 2008 17:24:15 +0000</pubDate>
		<guid>http://haleyai.com/wordpress/2008/04/18/a-common-upper-ontology-for-advanced-placement-tests/#comment-282</guid>
		<description>A few errors and quibbles, plus one fundamental disagreement:
1.) One second of arc is 1/(360*60*60)th = 1/1,296,000 of a circle, not 1/3,600.
2.) Ratio vs fraction - you assume fractions allow only integers for numerators or denominators but this is true only in the simplest maths and not at all in physics or chemistry. The point of SI (or other unit systems) is that everything has an explicit unit or an explicit lack of a unit, so almost no calculations are done against bare numbers. Your distinction between fractions and ratios here does not seem to serve your argument. However, I certainly agree that a ratio can be between any two related quantities, whether the result has an explicit or implicit unit or not.

Finally,

3.) I have a basic disagreement with your statement: "... the physicists and chemists who defined the the International System of Units overlooked [angles]." SI was intended to define units and relationships unambiguously to replace the hodge-podge of units and measurements that existed in different locations prior to the French Revolution. The radian was an SI supplemental dimensionless unit until 1995, after which it was relegated to a derived unit. Same goes for the steridian.</description>
		<content:encoded><![CDATA[<p>A few errors and quibbles, plus one fundamental disagreement:<br />
1.) One second of arc is 1/(360*60*60)th = 1/1,296,000 of a circle, not 1/3,600.<br />
2.) Ratio vs fraction - you assume fractions allow only integers for numerators or denominators but this is true only in the simplest maths and not at all in physics or chemistry. The point of SI (or other unit systems) is that everything has an explicit unit or an explicit lack of a unit, so almost no calculations are done against bare numbers. Your distinction between fractions and ratios here does not seem to serve your argument. However, I certainly agree that a ratio can be between any two related quantities, whether the result has an explicit or implicit unit or not.</p>
<p>Finally,</p>
<p>3.) I have a basic disagreement with your statement: &#8220;&#8230; the physicists and chemists who defined the the International System of Units overlooked [angles].&#8221; SI was intended to define units and relationships unambiguously to replace the hodge-podge of units and measurements that existed in different locations prior to the French Revolution. The radian was an SI supplemental dimensionless unit until 1995, after which it was relegated to a derived unit. Same goes for the steridian.</p>
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		<title>Comment on Real AI for Games by Autocad Architecture 2008</title>
		<link>http://haleyai.com/wordpress/2008/04/16/real-ai-for-games/#comment-279</link>
		<dc:creator>Autocad Architecture 2008</dc:creator>
		<pubDate>Sat, 28 Jun 2008 07:25:21 +0000</pubDate>
		<guid>http://haleyai.com/wordpress/2008/04/16/real-ai-for-games/#comment-279</guid>
		<description>&lt;strong&gt;Autocad Architecture 2008&lt;/strong&gt;

Dave Mark&#8217;s post on Why Not More Simulation in Game AI?and the comments it elicited are right ...</description>
		<content:encoded><![CDATA[<p><strong>Autocad Architecture 2008</strong></p>
<p>Dave Mark&#8217;s post on Why Not More Simulation in Game AI?and the comments it elicited are right &#8230;</p>
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		<title>Comment on Zigtag for social semantic tagging by Great Article on Zigtag &#171; Zigtag&#8217;s Weblog</title>
		<link>http://haleyai.com/wordpress/2008/06/25/if-you-tag-like-me-zigtag-is-it/#comment-278</link>
		<dc:creator>Great Article on Zigtag &#171; Zigtag&#8217;s Weblog</dc:creator>
		<pubDate>Fri, 27 Jun 2008 20:39:14 +0000</pubDate>
		<guid>http://haleyai.com/wordpress/2008/06/25/if-you-tag-like-me-zigtag-is-it/#comment-278</guid>
		<description>[...] Article on&#160;Zigtag  Posted on June 27, 2008 by Scott Montgomerie   Zigtag got a great writeup from one of our users, Paul Haley, on his blog.  The article describes the differences between [...]</description>
		<content:encoded><![CDATA[<p>[&#8230;] Article on&nbsp;Zigtag  Posted on June 27, 2008 by Scott Montgomerie   Zigtag got a great writeup from one of our users, Paul Haley, on his blog.  The article describes the differences between [&#8230;]</p>
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		<title>Comment on Zigtag for social semantic tagging by Scott Montgomerie</title>
		<link>http://haleyai.com/wordpress/2008/06/25/if-you-tag-like-me-zigtag-is-it/#comment-277</link>
		<dc:creator>Scott Montgomerie</dc:creator>
		<pubDate>Thu, 26 Jun 2008 21:16:39 +0000</pubDate>
		<guid>http://haleyai.com/wordpress/2008/06/25/if-you-tag-like-me-zigtag-is-it/#comment-277</guid>
		<description>Paul, thanks for the great article.  

I'd like to respond to a few points in your article for clarity.  

First, we will be releasing an API in the next few months allowing you to access our semantic ontology and much of the data that we are gathering.  This will include a similar API to delicious', which will allow you to get information on your bookmarks, tags, groups, etc., but it will also allow access to our ontology.  Whether or not the API will use OWL as its format is to be decided, but if there is a market demand for OWL export, we will be happy to provide that.

One of our goals with this API is to develop a platform for others to use our ontology in their applications.  For example, we're considering having the first application built on this platform be a wordpress plugin that would allow people to tag their blog articles semantically.  If anybody has any other cool ideas for us to develop for our API, please contact us.

In terms of opening our ontology, we will also be providing a way for users to add, edit, and delete defined tags. Initially, this will be limited to trusted users, but eventually we'd like to expand it into a wikipedia-like community process.

As for recommendations, we have just (as of yesterday) implemented friend recommendations, and group recommendations are coming soon - great idea Paul!  Our tag recommendation system is continually improving both algorithmically and with the number of bookmarks in the system, as we want to make adding tags as easy as possible.

We're trying hard to build a powerful next-generation tool that everyone will use, so if you have any comments or suggestions, feel free to contact us (contact at zigtag.com). 

</description>
		<content:encoded><![CDATA[<p>Paul, thanks for the great article.  </p>
<p>I&#8217;d like to respond to a few points in your article for clarity.  </p>
<p>First, we will be releasing an API in the next few months allowing you to access our semantic ontology and much of the data that we are gathering.  This will include a similar API to delicious&#8217;, which will allow you to get information on your bookmarks, tags, groups, etc., but it will also allow access to our ontology.  Whether or not the API will use OWL as its format is to be decided, but if there is a market demand for OWL export, we will be happy to provide that.</p>
<p>One of our goals with this API is to develop a platform for others to use our ontology in their applications.  For example, we&#8217;re considering having the first application built on this platform be a wordpress plugin that would allow people to tag their blog articles semantically.  If anybody has any other cool ideas for us to develop for our API, please contact us.</p>
<p>In terms of opening our ontology, we will also be providing a way for users to add, edit, and delete defined tags. Initially, this will be limited to trusted users, but eventually we&#8217;d like to expand it into a wikipedia-like community process.</p>
<p>As for recommendations, we have just (as of yesterday) implemented friend recommendations, and group recommendations are coming soon - great idea Paul!  Our tag recommendation system is continually improving both algorithmically and with the number of bookmarks in the system, as we want to make adding tags as easy as possible.</p>
<p>We&#8217;re trying hard to build a powerful next-generation tool that everyone will use, so if you have any comments or suggestions, feel free to contact us (contact at zigtag.com).</p>
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		<title>Comment on Probabilities are Better than Scores by snshor</title>
		<link>http://haleyai.com/wordpress/2008/05/08/probabilities-are-better-than-scores/#comment-214</link>
		<dc:creator>snshor</dc:creator>
		<pubDate>Sun, 11 May 2008 17:23:28 +0000</pubDate>
		<guid>http://haleyai.com/wordpress/2008/05/08/probabilities-are-better-than-scores/#comment-214</guid>
		<description>I think FICO score still proved as areliable tool in measuring &lt;i&gt;relative&lt;/i&gt; probabilities. Another thing, the crisis started in subprime mortgages - by definition the sector with a higher probability of default. IMHO, considering the width of the problem, it is not the model's fault, it is the much more general systemic fault of knowing the limitations of the model by the people responsible for the decisions. As is the case with Newtonian physics, for example. 

The statistical models are vulnerable to the "black swan" events as a very timely Nasim Taleb's book has pointed out. It is a bit ironic, that the people putting "past performance" clause into all the fine print, could not apply the same principle to the statistical models that always look at the back mirror. It is too much to expect that FICO score, solely based on individual's credit behaviour, could predict housing market meltdown, that happened a few years after the most of the subjects happily granted and received their motgages, packaged it and sold to investors as the "the bulletproof" instrument. Last year Goldman and otehr were explaining their losses, as caused by 25-sigma event. Anyone with a slightest bit of statistical knowledge can judge this statement, as being either admission of using the low-touch-with-reality model, or even worse, not understanding it.</description>
		<content:encoded><![CDATA[<p>I think FICO score still proved as areliable tool in measuring <i>relative</i> probabilities. Another thing, the crisis started in subprime mortgages - by definition the sector with a higher probability of default. IMHO, considering the width of the problem, it is not the model&#8217;s fault, it is the much more general systemic fault of knowing the limitations of the model by the people responsible for the decisions. As is the case with Newtonian physics, for example. </p>
<p>The statistical models are vulnerable to the &#8220;black swan&#8221; events as a very timely Nasim Taleb&#8217;s book has pointed out. It is a bit ironic, that the people putting &#8220;past performance&#8221; clause into all the fine print, could not apply the same principle to the statistical models that always look at the back mirror. It is too much to expect that FICO score, solely based on individual&#8217;s credit behaviour, could predict housing market meltdown, that happened a few years after the most of the subjects happily granted and received their motgages, packaged it and sold to investors as the &#8220;the bulletproof&#8221; instrument. Last year Goldman and otehr were explaining their losses, as caused by 25-sigma event. Anyone with a slightest bit of statistical knowledge can judge this statement, as being either admission of using the low-touch-with-reality model, or even worse, not understanding it.</p>
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		<title>Comment on Probabilities are Better than Scores by paul@haleyAI.com</title>
		<link>http://haleyai.com/wordpress/2008/05/08/probabilities-are-better-than-scores/#comment-190</link>
		<dc:creator>paul@haleyAI.com</dc:creator>
		<pubDate>Fri, 09 May 2008 12:46:03 +0000</pubDate>
		<guid>http://haleyai.com/wordpress/2008/05/08/probabilities-are-better-than-scores/#comment-190</guid>
		<description>I would not disagree with you, James, that the FICO score was not intended as a probability, but practically speaking, that is how it has been used.  Dr. Breeden's presentation specifically addresses how lenders do not account for the variation between FICO scores and probabilities through interest rate and real estate cycles.  My thesis here is not that scores are useless but that probabilities are better and more direct.  

Yep, Vantage is a nasty, effective move by the credit agencies against Fair Isaac's prior monopoly.  I feel for Fair Isaac on that one.  But Dr. Greene, FICO CEO, explicitly acknowledged the continuing negative impact of Vantage on revenues.

So, I think my facts are in order, I'm afraid.  But I truly understand how upsetting the recent wounds from sloppy lending practices and unfair competition are to those who have enjoyed working with Fair Isaac.

As for Ilog's announcement, I was going to blog on that today!  I'll pass now that you've covered it.

Respectfully, Paul</description>
		<content:encoded><![CDATA[<p>I would not disagree with you, James, that the FICO score was not intended as a probability, but practically speaking, that is how it has been used.  Dr. Breeden&#8217;s presentation specifically addresses how lenders do not account for the variation between FICO scores and probabilities through interest rate and real estate cycles.  My thesis here is not that scores are useless but that probabilities are better and more direct.  </p>
<p>Yep, Vantage is a nasty, effective move by the credit agencies against Fair Isaac&#8217;s prior monopoly.  I feel for Fair Isaac on that one.  But Dr. Greene, FICO CEO, explicitly acknowledged the continuing negative impact of Vantage on revenues.</p>
<p>So, I think my facts are in order, I&#8217;m afraid.  But I truly understand how upsetting the recent wounds from sloppy lending practices and unfair competition are to those who have enjoyed working with Fair Isaac.</p>
<p>As for Ilog&#8217;s announcement, I was going to blog on that today!  I&#8217;ll pass now that you&#8217;ve covered it.</p>
<p>Respectfully, Paul</p>
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		<title>Comment on Probabilities are Better than Scores by jamet123</title>
		<link>http://haleyai.com/wordpress/2008/05/08/probabilities-are-better-than-scores/#comment-186</link>
		<dc:creator>jamet123</dc:creator>
		<pubDate>Fri, 09 May 2008 06:27:48 +0000</pubDate>
		<guid>http://haleyai.com/wordpress/2008/05/08/probabilities-are-better-than-scores/#comment-186</guid>
		<description>Paul
Normally I find your posts very accurate but today, I fear, I have to take issue:
- The FICO score is not, never was and was never said to me a measure of the likelihood of default on a mortgage. Any lender who took it as such is probably beyond help - they would have taken any other analytic measure and misused it too.
- Scorecards are a technique for PRESENTING an analytic that is defensible with regulators and easy to explain. Scores can be built using any and all analytic techniques and often are. Lots of other techniques, like Neural Nets, can create scores. What they struggle to do is explain them. Scorecards get used because they can be used to explain, not because of any particular predictive power. This has not changed in the current meltdown.
- Vantage is impacting scoring revenues because the bureaus are practically giving it away, necessary to promote adoption, and the lenders can obviously use this to create price pressure on Fair Isaac. I don't know but I suspect that every Vantage user is also using the FICO score. Competition, yes, but just another version of the same kind of model created to try and capture some of Fair Isaac's revenue not to create any new kind of score.

I do agree that there is a huge gap in the analytics world figuring out how to bring non-technical (in this case non-statistical) people into the process to enable effective collaboration. The rules community has done a lot here, the process community a little, the analytic community almost nothing. This needs to change.

I actually started the comment simply to point out that ILOG's recent release of a scorecard modeler (blogged about &lt;a href="http://smartenoughsystems.com/wp/2008/05/07/first-look-ilog-scorecard-add-on/" rel="nofollow"&gt;here&lt;/a&gt;) is another sign of convergence but you had made some unusually sloppy statements that I felt needed correction.</description>
		<content:encoded><![CDATA[<p>Paul<br />
Normally I find your posts very accurate but today, I fear, I have to take issue:<br />
- The FICO score is not, never was and was never said to me a measure of the likelihood of default on a mortgage. Any lender who took it as such is probably beyond help - they would have taken any other analytic measure and misused it too.<br />
- Scorecards are a technique for PRESENTING an analytic that is defensible with regulators and easy to explain. Scores can be built using any and all analytic techniques and often are. Lots of other techniques, like Neural Nets, can create scores. What they struggle to do is explain them. Scorecards get used because they can be used to explain, not because of any particular predictive power. This has not changed in the current meltdown.<br />
- Vantage is impacting scoring revenues because the bureaus are practically giving it away, necessary to promote adoption, and the lenders can obviously use this to create price pressure on Fair Isaac. I don&#8217;t know but I suspect that every Vantage user is also using the FICO score. Competition, yes, but just another version of the same kind of model created to try and capture some of Fair Isaac&#8217;s revenue not to create any new kind of score.</p>
<p>I do agree that there is a huge gap in the analytics world figuring out how to bring non-technical (in this case non-statistical) people into the process to enable effective collaboration. The rules community has done a lot here, the process community a little, the analytic community almost nothing. This needs to change.</p>
<p>I actually started the comment simply to point out that ILOG&#8217;s recent release of a scorecard modeler (blogged about <a href="http://smartenoughsystems.com/wp/2008/05/07/first-look-ilog-scorecard-add-on/" rel="nofollow">here</a>) is another sign of convergence but you had made some unusually sloppy statements that I felt needed correction.</p>
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		<title>Comment on Goals and backward chaining using the Rete Algorithm by Backward Chaining on a Rete Network &#171; Nothing Fancy</title>
		<link>http://haleyai.com/wordpress/2008/03/11/goals-and-backward-chaining-using-the-rete-algorithm/#comment-110</link>
		<dc:creator>Backward Chaining on a Rete Network &#171; Nothing Fancy</dc:creator>
		<pubDate>Thu, 01 May 2008 19:06:33 +0000</pubDate>
		<guid>http://haleyai.com/wordpress/2008/03/11/goals-and-backward-chaining-using-the-rete-algorithm/#comment-110</guid>
		<description>[...] Goals and backward chaining using the Rete Algorithm (by Paul Haley) [...]</description>
		<content:encoded><![CDATA[<p>[&#8230;] Goals and backward chaining using the Rete Algorithm (by Paul Haley) [&#8230;]</p>
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		<title>Comment on Adaptive Decision Management by MZ</title>
		<link>http://haleyai.com/wordpress/2008/04/15/adaptive-decision-management-for-business-performance-management/#comment-109</link>
		<dc:creator>MZ</dc:creator>
		<pubDate>Thu, 01 May 2008 18:16:39 +0000</pubDate>
		<guid>http://haleyai.com/wordpress/2008/04/15/adaptive-decision-management-for-business-performance-management/#comment-109</guid>
		<description>Paul, excellent article and music to our ears!  At Zementis, we have been pursuing the direction of "Adaptive Decision Technology" by combining predictive analytics and rules in our ADAPA decision engine.

They are, so to speak, the yin and yang of decisions, one representing explicit knowledge (rules) and the other one representing implicit knowledge which is "hidden" in your data and can be discovered by statistical algorithms.

I am sure we will see a broader adoption of predictive analytics as part of EDM (or ADM) as the industry makes it easier to deploy and manage such complex decision systems.</description>
		<content:encoded><![CDATA[<p>Paul, excellent article and music to our ears!  At Zementis, we have been pursuing the direction of &#8220;Adaptive Decision Technology&#8221; by combining predictive analytics and rules in our ADAPA decision engine.</p>
<p>They are, so to speak, the yin and yang of decisions, one representing explicit knowledge (rules) and the other one representing implicit knowledge which is &#8220;hidden&#8221; in your data and can be discovered by statistical algorithms.</p>
<p>I am sure we will see a broader adoption of predictive analytics as part of EDM (or ADM) as the industry makes it easier to deploy and manage such complex decision systems.</p>
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		<title>Comment on Super Crunchers:  predictive analytics is not enough by Interesting post about imrpoving on predictive analytics &#171; Hans Gilde&#8217;s weblog</title>
		<link>http://haleyai.com/wordpress/2008/04/29/super-crunchers-predictive-analytics-is-not-enough/#comment-102</link>
		<dc:creator>Interesting post about imrpoving on predictive analytics &#171; Hans Gilde&#8217;s weblog</dc:creator>
		<pubDate>Wed, 30 Apr 2008 17:17:57 +0000</pubDate>
		<guid>http://haleyai.com/wordpress/2008/04/29/super-crunchers-predictive-analytics-is-not-enough/#comment-102</guid>
		<description>[...] 30, 2008   I really like this post by, I think, Paul Haley, discussing a talk on predictive analytics. One good quote from the post [...]</description>
		<content:encoded><![CDATA[<p>[&#8230;] 30, 2008   I really like this post by, I think, Paul Haley, discussing a talk on predictive analytics. One good quote from the post [&#8230;]</p>
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