World Cup Predictions

Commenting on how some economists have applied quantitative analysis models to predict World Cup winners, SMU Assistant Professor of Finance Aurobindo Ghosh said, "Actually, when a banks look at the future, they are looking at sometimes uncertain outcomes of the economy. And football is something which is uncertain – we don't know what the goals will be and the outcome of the game. So, banks use similar technology as they do for predictions of the economy to predict the number of goals the team will score in the future. And then they look at which is the team which is going to come on top if they look at these predictions… It's mathematical based on assumptions they are making. But if they assume something which is not really correct, then the outcomes are not going to be correct either. “

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Channel NewsAsia, Money Mind