There is a phenomenon that drives everything from the stock market to orange juice prices. By taking the average of all guesses about something, you can collectively get the right answer. This was put to the test at a county fair using a cow named Penelope. People guessed the weight of a cow and the average of over 17,000 guesses was within 5 percent of Penelope’s actual weight. This story about the wisdom of crowds will help you explain how the stock market works.
Story Length: 4:17
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AIR DATE: 08/20/2015
August 30, 2015
4:14
Since June 2015, the stock market in China has been posting losses, falling as much as 11% in one week. The crash in China has spilled over into global markets. Last week the Dow Jones, a U.S. stock market index, closed below 17,000 for the first time in almost a year, possibly due to fear that the plunging Chinese economy will bring others down with it. The government in China has been trying to manage its economy by cutting rates and announcing a surprise currency devaluation, but these efforts are not stopping the drop. What more can they do? Listen to hear from investment experts about the stock market crash in China.
Read MoreFebruary 19, 2015
3:54
Complex computer algorithms designed to weigh options and make choices are consistently outperforming humans. The algorithms aren’t perfect, though, and many people have a hard time trusting them. Why do we feel this way? Would you trust a computer to make an important decision in your life? Listen to learn more about how algorithms work and why humans often mistrust them.
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