The Journal of Risk and Insurance was published in 1967 by American Risk and Insurance Association. The main point made by the author, J. Fred Weston that " Is it really a bad thing if people learn and teach finance by using some of the techniques, like models or statistical testing?"
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The author wrote " The use of models, careful statistical testing of hypotheses and propositions, decision theory, the techniques of operations anylysis, and new powerful tools of programming began to be applied to the finance field..." In old times, people might not like trying new ideas, but nowadays, models and statistical testing are the most basic tools for economists or finance professionals to predict and learn our economy ad analyze financial risks. In the article, J. Fred mentions that some of the people believed in textbook literacy and they thinks these theories can not be tested.
Knowledge should not just be theories, instead, they should be applied in real life. In my economic courses, students are required to know how to solve some of the basic math problems because mathematics are used to prove theories. Numbers can reflect problems. The value of GDP can tell economists how a country's economy develops but it also can tell economists problems. Models and statistical testing are created based on theories. Traditional textbook is a great way to tell "what these theories are" but models and statistical testing can make us understand " what do theses theories mean."
Works Citation
Weston, J. Fred. The Journal of Risk and Insurance. N.p.: American Risk and Insurance Association, n.d. JSTOR. 1967. Web. 19 Mar. 2016. <http://www.jstor.org/stable/251429?seq=3#page_scan_tab_contents>.
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