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To: Oeconomicus who wrote (7894)2/6/2003 11:33:21 PM
From: TEDennis  Respond to of 9677
 
Well, that's one interpretation. I think you're close.

However, I think their model also contains a random chaos generator.

It's a very sophisticated chaos generator.

It goes something like this ...

Put a bottle inside a circle of numbered rocks. Numbered 0 through 9.

Spin the bottle once for each digit you want in the answer. Whichever number the bottle points to when it's done spinning is the one you use.

The only digit in the result you have to be careful about is the leading one. Keep spinning until it's at most a double from the leading digit in the actual closing price for that day. And, for goodness sakes, keep spinning until it's at least one number higher than the leading digit in the actual closing price. We don't want any skittish investors selling just because the "value" is less than the price.

TED [scattered sequence]