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Re:How much have layoffs affected engineers vs. other depart... by ivalm on Friday October 14, 2022 @09:57PM (#33210879)
It’s 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.

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