The Arithmetic of Uncertainty
A SIP (Stochastic Information Packet) is an array of possible outcomes of some uncertainty. Two or more SIPs, which preserve the statistical relationship between uncertainties, are said to be coherent. And a set of coherent SIPs is called a Stochastic Library Unit with Relationships Preserved, or a SLURP. The beauty of coherent SIPs is that you can do calculations with them like numbers, hence the Arithmetic of Uncertainty.
NOTE: To experiment with the Excel examples below, you will need to Enable Content, if asked, and make sure that Excel is in Automatic Calculation mode. The first Excel example requires Excel 2010 or later. The following models below require 2007 or later.
SIPmath™ Part 1: Calculating with Uncertainties
Screenshot of the Excel example
Download the Sparkland demonstration of SIPmath
SIPmath™ Part 2: The Model that Launched 1,000 Mutual Funds
Screenshot of the Excel example
Download the SIP math Portfolio model
SIPmath™ Part 3: It's Done with Data Tables
Screenshot of the Excel example
Download the model with two SIPs of 100,000 numbers
SIPmath™ Part 4: More SIP math Examples (Central Limit Theorem, Lognormal distribution)
Screenshot of the Excel example
Download the SIP math Tutorial