IFA.com - Sir Francis: Probability Machine, Galton Board, Randomness Simulator, Quincunx

http://IFA.com http://hebnermodel.com An explanation of how random beads falling through an assortment of pins, in the pattern of a quincunx, looks like monthly returns of IFA Index Portfolio 100 over 50 years, ending 2008. See http://ifa.com/portfolios/p100/ - IP100 is a simulated index portfolio, with data going back to Jan 1928. - The machine was named Francis, in honor of Sir Francis Galton who first created such a machine in 1873. (see http://www.ucl.ac.uk/museums/galton/statistics/quincunx.html ). Also see http://en.wikipedia.org/wiki/Bean_machine and http://en.wikipedia.org/wiki/Normal_distribution . Video is narrated by Mark Hebner. Also see http://www.ifa.com/Library/Support/Data/returnsandstandarddeviationsformodelportfolios.asp#histo also see Chart number 10 on that page.