Re:How much have layoffs affected engineers vs. other depart...
by ivalm on Friday October 14, 2022 @09:57PM
(#33210879)
Itβs not about the amount of measurement points, uncertainties in dollar amounts tend to scale as sqrt. When you error propagate that you see that inflation uncertainty scales with inflation.
Very simple model
Inflation=v1/v2
D(inflation)=sqrt((D(v1)/v2)^2+(v1/v2^2 D(v2))^2)
Suppose
D(v1)=c sqrt(v1)
D(v2)=c sqrt(v2)
D(inflation)=c sqrt(v1/v2^2+v1^2/v2^3)= c sqrt(inflation+inflation^2)/sqrt(v2)
So can be seen that the leading term for uncertainty in inflation is linear with inflation.
Exact same amount of data points for inputs as 2% inflation.