Laplace always said the reality could be accurately defined if one examined and categorized finely enough the all the perturbances, and their influences. Laplace sought to define the causation of flux, and Fourier went further to say that the flux was predictable by arguing the component parts of flux were if not linear, then regularly varying, and the singularities in nature only the juxtapose of fluxion elements of varying frequency and amplitude. Fourier further amazed the scientific world by working backwards from the standing wave to its component parts by calculus analysis, similar to an intergral equation but in reverse and recursive. Modern engineers such as Shannon and others were quick to see the predictive nature of this analysis, and statistical application of this concept forms in part the basis of electronic engineering, filtration, code compression, and predictive signal filtration. The further application of digital signal filtration using Tau and De components to analyse wave patterns has be applied to the stock market waves with some success. (Kondratiev, Elliot, et al) Variants of these statistical concepts were used by Ed Thorpe to form the basis for hedge fund math and by others for Black-Scholes, which guides the setting out of value of market options. The key in these methods is the statistical analysis of volatility.
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