Abstract
Many people currently have access to a great deal of computerized data that can serve many purposes. However, to make optimal use of this information, it is important to have methods of reviewing and analyzing this information in comprehensive, accurate, and efficient ways. An effective strategy for doing this is to use familiar computer programs to generate analog displays of available data that reveal useful and easily recognizable patterns in the information. Once relevant patterns in the information are recognized, the same digital data that were used to produce the analog displays can be used to study those patterns with great precision. In these ways, we can benefit greatly from what the availability of computerized data has to offer.
At the present time, computers generate enormous amounts of electronic data that are intended to serve the diverse needs of many people throughout the world. The availability of personal computers, in conjunction with access to the Internet, has helped many to use to these data to achieve their professional, commercial, and individual goals. Since computerized information can serve many important purposes, it is crucial that there be practical methods for using it most effectively. Features of such methods certainly include the need to interpret the data correctly. Also, the sheer volume of data available to us has also made it important that these methods enable us to review and analyze the data efficiently. Such reviews and analyses must be comprehensive. In other words, the speed with which one can review and analyze data should not come at the price of ignoring or discarding information that may be important.
Also, to be of greatest general use, our methods of displaying, reviewing, and analyzing data should be flexible and easy to employ. For example, a broadly applicable method that uses commonly available software is likely to be useful to more people than a method that requires the skills of computer programmers to accomplish only a highly specific task.
Optimal methods for displaying, reviewing, and interpreting computerized data can benefit people of many different interests and occupations. Such individuals include nurses, physicians, individual investors, businessmen, financial analysts, social scientists, engineers, economists, geologists, actuaries, political pollsters, and meteorologists.
The output of computers typically consists of digital data, i.e., numbers. Surely, there are plenty of different ways of analyzing numerical data. However, many of these methods, such as various types of mathematical modeling, generally require considerable training and skill in mathematics and statistics. In contrast, more intuitive ways of handling numerical data are available. For example, it is often advantageous to display the digital data not as numbers
per se, but rather as pictorial images. We do this whenever we use the numbers to produce graphs of the data. In other words, we can often benefit from transforming the information provided by the computer from digital to analog form. For example, individual investors and investment professionals often employ “technical analysis” to try to predict whether the prices of stocks, bonds, mutual funds, and exchange-traded funds will rise or fall in the future. Technical analysis consists of studying previous patterns of variation in the prices of these securities. The investors and professional analysts hope that certain patterns of price fluctuation shown by these “technical charts” will help them buy securities when the prices are low and sell them when the prices are higher.
Table 1.1 shows digital data that represent the closing prices in dollars of a security that mirrors the S&P 500 Index during the preceding 12-month period. Each number is the closing price in dollars of that security for each trading day of the previous year. The numbers are arranged in order from left to right and top to bottom, in the same fashion as the words on a page of English text. The information shown in
Figure 1.1 is identical to that in
Table 1.1, but is provided in analog, rather than in digital form.
Figure 1.1 is simply a line graph of the digital data in
Table 1.1 and shows, from left to right, the daily changes in the closing price of the security during the same 12
-month period.
Figure 1.1 is an example of a “technical chart.” The column of numbers on the left side of the graph represents the security’s closing price in dollars.
Table 1.1 and
Figure 1.1 contain identical information. However, the analog presentation of the information in
Figure 1.1 makes it much easier to detect temporal patterns in the fluctuations of the security’s price than is possible by examining the digital data in
Table 1.1.
Table 1.1
Digital Representation of a Security’s Closing Prices in Dollars
| 182.89 | 182.36 | 183.48 | 183.52 | 183.64 | 184.14 | 181.69 | 183.67 | 184.66 |
| 183.64 | 184.18 | 184.3 | 182.79 | 178.89 | 178.01 | 179.07 | 177.35 | 179.23 |
| 174.17 | 175.39 | 175.17 | 177.48 | 179.68 | 180.01 | 181.98 | 182.07 | 183.01 |
| 184.24 | 183.02 | 184.1 | 183.89 | 184.91 | 184.84 | 184.85 | 185.82 | 186.29 |
| 187.58 | 187.75 | 188.18 | 188.26 | 188.16 | 187.23 | 187.28 | 185.18 | 184.66 |
| 187.66 | 186.66 | 187.75 | 186.2 | 185.43 | 186.31 | 184.97 | 184.58 | 185.49 |
| 188.25 | 188.88 | 188.63 | 186.4 | 184.34 | 185.1 | 187.09 | 183.16 | 181.51 |
| 184.2 | 186.13 | 186.39 | 187.04 | 187.89 | 187.45 | 187.83 | 186.29 | 186.88 |
| 188.31 | 188.33 | 188.06 | 188.42 | 186.78 | 187.88 | 187.68 | 187.96 | 189.79 |
| 189.06 | 187.4 | 188.05 | 188.74 | 187.55 | 189.13 | 189.59 | 190.35 | 191.52 |
| 192.37 | 192.68 | 192.9 | 192.8 | 193.19 | 194.45 | 195.38 | 195.58 | 195.6 |
| 193.54 | 194.13 | 194.29 | 194.83 | 196.26 | 196.48 | 195.94 | 195.88 | 194.7 |
| 195.44 | 195.82 | 195.72 | 197.03 | 197.23 | 197.96 | 195.71 | 197.71 | 197.34 |
| 198.64 | 198.65 | 197.72 | 197.8 | 196.95 | 196.98 | 193.09 | 192.5 | 193.89 |
| 192.07 | 191.03 | 193.24 | 193.8 | 193.53 | 194.84 | 195.76 | 195.72 | 197.36 |
| 198.92 | 199.5 | 199.19 | 200.2 | 200.33 | 200.25 | 200.14 | 200.71 | 200.61 |
| 200.21 | 201.11 | 200.59 | 199.32 | 200.07 | 200.3 | 199.13 | 198.98 | 200.48 |
| 201.82 | 200.7 | 199.15 | 198.01 | 199.56 | 196.34 | 197.9 | 197.54 | 197.02 |
| 194.38 | 196.52 | 196.29 | 193.26 | 196.64 | 192.74 | 190.54 | 187.41 | 187.7 |
| 186.27 | 188.47 | 190.3 | 194.07 | 192.69 | 194.93 | 196.43 | 196.16 | 198.41 |
| 199.38 | 201.66 | 201.77 | 201.07 | 202.34 | 203.15 | 203.34 | 203.98 | 204.18 |
| 204.19 | 204.24 | 204.37 | 205.55 | 205.22 | 205.58 | 206.68 | 207.26 | 207.11 |
| 207.2 | 205.76 | 207.09 | 207.89 | 207.66 | 208 | 206.61 | 206.47 | 203.16 |
| 200.89 | 199.51 | 197.91 | 201.79 | 206.78 | 206.52 | 207.47 | 207.75 | 207.77 |
| 208.72 | 207.6 | 205.54 | 205.43 | 201.72 | 199.82 | 202.31 | 205.9 | 204.25 |
Fig. 1.1Analog representation of the data in Table 1.1. Seismography is another field that demonstrates the value of presenting data in analog form. Geologists rely on seismographs...