Monday, October 27, 2014

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Envisioning Information, by Edward R. Tufte

This book celebrates escapes from the flatlands of both paper and computer screen, showing superb displays of high-dimensional complex data. The most design-oriented of Edward Tufte's books, Envisioning Information shows maps, charts, scientific presentations, diagrams, computer interfaces, statistical graphics and tables, stereo photographs, guidebooks, courtroom exhibits, timetables, use of color, a pop-up, and many other wonderful displays of information. The book provides practical advice about how to explain complex material by visual means, with extraordinary examples to illustrate the fundamental principles of information displays. Topics include escaping flatland, color and information, micro/macro designs, layering and separation, small multiples, and narratives. Winner of 17 awards for design and content. 400 illustrations with exquisite 6- to 12-color printing throughout. Highest quality design and production.

  • Sales Rank: #79279 in Books
  • Published on: 1990-05-01
  • Number of items: 1
  • Dimensions: 1.30 pounds
  • Binding: Paperback
  • 128 pages

Amazon.com Review
A remarkable range of examples for the idea of visual thinking, with beautifully printed pages. A real treat for all who reason and learn by means of images. -- Rudolf Arnheim

Review
A beautiful, magnificent sequel to his classic,

The Visual Display of Quantitative Information -- American Mathematical Society

A beautifully illustrated, well-argued volume. -- Scientific American

Most helpful customer reviews

103 of 106 people found the following review helpful.
Escaping Flatland, and avoiding chart junk along the way
By Abhinav Agarwal
Passionate exposition on effective visualizations. Key takeaways are small-multiples, use of color, and use of details. However, the material on maps is sketchy. While mostly good, it is also distractedly didactic. While a must-have in any collection on data visualizations, for people looking for only one book on effective data visualizations, this is not it.
This book is like the poetry of visualizations; you will need to supplement it with books that are the prose of visualizations - see suggestions at the end of the review.

Why 3 Stars???
--------------
I initially gave this four stars, but then changed it to three stars. This may seem harsh, but hear me out. There is lots that is good in the book. However, this book's focus is more on cartography and maps. And this is where it falls short. It does not address the issue of map based visualizations in any sort of depth. Not much space is devoted to the different types of map based visualizations - dot plots, qualitative and quantitative choropleths (color patches), heatmaps, proportional bars, 3D maps, maps with variable sized markers, isopleths, flow maps, dot-location maps, graduated symbol maps, and much, much, more. The other reason for deducting two stars is the fact that this book, in 2009, does read a bit dated. It is a beautifully laid out book, that almost falls into the coffee-table book category, but looking beyond that, the material does show its age. 10 or 15 years ago the rating would have been 4 or 5 stars. Perhaps unfair on my part...

Excerpt:
-------
On the topic of spatial maps, Tufte highlights a problem that may emerge with conventional choropleths (blot maps): "(they)... paint over areas formed by given geographic or political boundaries ..." and resulting in non-uniform sizes, and "historical changes in political boundaries disrupt continuity of statistical comparisons." The solution? Or at least one solution: "Mesh maps finesse these problems." Taking the example of a map of Japan, "... the whole country of Japan was divided up in 379,000 equal-sized units and then, in a heroic endeavor, census data and addresses were collated to match the new grid squares." [page 40, 41]

Some of the examples may not strike a resonant chord with everyone - for example, the "Weather Chart" at the top of page 32 looks too dense and full of diverse symbols to be truly effective.

Excerpts from the book:
-----------------------
"All communication between the readers of an image and the makers of an image must now take place on a two-dimensional surface. Escaping this flatland is the essential task of envisioning information." [page 12]

Given the inherent multi-dimensionality of data (a measure that represents value or values over time, region, and other dimensions - e.g. number of employees by year, by country, and by line-of-business), Tufte states that we should "... increase (1) the number of dimensions that can be represented on plane surfaces and (2) the data density (amount of information per unit area)." [page 13]
This focus on data density finds resonance throughout the book:
"Simplicity of reading derives from the context of detailed and complex information, properly arranged. A most unconventional design strategy is revealed: to clarify, add detail." [page 37]

Tufte is especially harsh on charts that feature "chart junk", what he describes as "... display apparatus and ornamentation" that "... seek to attract and divert attention...", and that "Lurking behind chart junk is contempt both for information and for the audience. ... designing as if readers were obtuse and uncaring... " [page 33, 34]

"The struggle between maintenance of context and enforcement of comparison... " [page 77]

Excessive or wanton use of color can be very damaging to the visualization. Eduard Imhof enumerates four rules of minimizing such color damage:
"First rule: Pure, bright colors or very strong colors have loud, unbearable effects when they stand unrelieved over large areas adjacent to each other, but extraordinary effects can be achieved when they are used sparingly on or between dull background tones. ...
Second rule: The placing of light, bright colors mixed with white next to each other usually produces unpleasant results..." [page 82]

Tufte lists "... the fundamental uses of color in information design: to label (color as noun), to measure (color as quantity), to represent or intimate reality (color as representation), and to enliven or decorate (color as beauty)." [page 81]

Cons:
-----
The book is short. It doesn't feel so, but is in fact all of 126 pages.
More color is needed.
Some of the reproductions are not very clear, and it is a real strain on the eyes to discern the data and the visualization: certainly not a ringing endorsement for a book on visualizations.
Without some any formal, theoretical background, this book feels incomplete.

In Closing:
-----------
Consider this: while you may use other books more frequently to learn and reference when creating visualizations, charts, or dashboards, you will want to keep this book handy to remind yourself of the bigger picture and the historical context of visualizations.

Suggested Additional Reading:
-----------------------------
You should supplement the visual feast in Tufte's "Envisioning Information" with these books:
- Tufte's other book, The Visual Display of Quantitative Information, 2nd edition, is probably the better one.
- Stephen Few's "Information Dashboard Design: The Effective Visual Communication of Data"
- Jenifer Tidwell's "Designing Interfaces: Patterns for Effective Interaction Design"
- Colin Ware's "Information Visualization, Second Edition: Perception for Design (Interactive Technologies)"
- Visualizing Data by William S. Cleveland
- Exploratory Data Analysis by John W. Tukey
and many other books that cover the topic of information visualizations.

5 of 5 people found the following review helpful.
A Classic with Quality, "Food for Thought" Examples
By S Jones
You'll find Tufte's name in the references in the back of almost every data visualization book out there. And while he has written several books, from what I can tell Envisioning Information is the favorite among readers (if by a slim margin).

The author's Yale professorship, Phi Beta Kappa label, design awards and science-focused edge all testify that he knows what he's talking about. But the real strength of the book in my opinion is that anyone with any level of knowledge on the topic of data visualization(beginner to advanced) can appreciate the book.

I'm a relative beginner with data visualization and, as experts seem to like the book so much, I was expecting very theory-based, slightly pedantic textbook content. Instead, I found the book easy to read, relying heavily on examples that became "food for thought" - Japanese cartography, train schedules, scientific experiments - you name it.

Other books I've read on the topic have casually thrown out unnecessary "fluff" examples to partially illustrate a point; Tufte's examples build carefully on top of the points his words have already clearly illustrated. It's precisely this "food for thought" feeling that makes me think I'll return to Envisioning Information for reference in the future.

1 of 1 people found the following review helpful.
this book is beautiful and enlightening
By Benjamin Weinstein-Raun
I'm an engineer. I have read unfortunately few books on information design, against which I might compare this one.

However, this book is beautiful and enlightening. It's pleasant to hold, with heavy, smooth pages; it's enjoyable to flip through, idly glancing at images; but most of all it's totally comprehensible. Reading the book feels like taking a great college class: All of the material is relevant and motivated by compelling examples, which are available for your immediate inspection.

I've been examining my own creations in a new light, but I've also been seeing the world differently.

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Saturday, October 25, 2014

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Internal Models and Solvency II: From Regulation to Implementation, by Paolo Cadoni

Under the Solvency II directive, insurance companies are required to calculate their Solvency Capital Requirement (SCR) in order to prove to supervisors, policyholders and beneficiaries that they have a high enough level of funds to absorb significant losses and to make payments as they fall due. They have a choice between a standard formula and an internal model in calculating their SCR.

Many companies favour internal models as they are more risk-sensitive, capture individual risk profiles and therefore reduce the capital requirements placed on insurance companies by Solvency II. However, internal models are subject to approval by supervisory bodies. Insurance companies need to demonstrate that their internal model meets the use test, statistical quality standards, calibration standards, validation standards and documentation standards.

Internal Models and Solvency II is the first authoritative reference book on Solvency II internal models for practitioners and regulators, providing practical insight into these models and their frameworks.

Internal Models and Solvency II clarifies the requirements for practitioners and senior executives by providing regulatory and practical insight into internal models. Perspectives from both the supervisory and industry side gives unique insight into the spirit and rationale of the requirements, and are complemented by practical solutions to the daily challenges faced when reviewing and implementing internal models.

Edited by Paolo Cadoni, currently Technical Head of the Insurance Policy Department at the Prudential Regulation Authority, this book provides support and solutions for the managers charged with implementing and validating their companies’ internal models, helping readers to ensure the compliance of their models. Insurance supervisors will also be able to use this book to clarify the requirements when reviewing internal model applications.

Internal Models and Solvency II gives readers a wider understanding of the history, challenges, philosophy, and future prospects of Solvency II internal models.

  • Sales Rank: #2818372 in eBooks
  • Published on: 2014-05-07
  • Released on: 2014-05-07
  • Format: Kindle eBook

Review
"Each chapter has been written by experts in the topic, individuals with hands-on experience of designing, validating, reviewing and using models. They share their experience here, and bring alive the requirements of Solvency II through practical insight." From the foreword by Gabriel Bernardino, Chairman, European Insurance and Occupational Pensions Authority (EIOPA)

About the Author
Paolo Cadoni

Paolo joined the PRA (formerly FSA) in 2004 where he has held a succession of posts both in banking and insurance. He is currently a Technical Head of Department in the Prudential Policy Division leading on PRA's input into the European Insurance and Occupational Pensions Authority s (EIOPA) Solvency II Committees and the International Association of Insurance Supervisors (IAIS) Solvency and Actuarial Issues Subcommittee.

Since March 2013 Paolo has been the Chair of the IAIS ComFrame Field Testing Task Force which is leading the development of the IAIS Global Capital Standards. Paolo has also chaired the EIOPA Internal Models Committee since 2009.

Until March 2009 he was also responsible for the FSA's policy development and implementation of the internal model method (IMM) for counterparty credit risk for banks and investment firms. He also represented the FSA in the Overall Capital and Quantitative Impact Study Working Group of the Basel Committee on Banking Supervision and led the FSA's work on QIS5.

Prior to becoming a regulator Paolo worked as a financial modeller in the oil and power sector.

He holds a Ph.D. in Finance from the ICMA Centre and an MSc in Econometrics from Southampton University

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  • Sales Rank: #5028130 in Books
  • Published on: 1800
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The Essentials of Risk Management, Second Edition, by Michel Crouhy, Dan Galai, Robert Mark

The definitive guide to quantifying risk vs. return--fully updated to reveal the newest, most effective innovations in financial risk management since the 2008 financial crisis

Written for risk professionals and non-risk professionals alike, this easy-to-understand guide helps you meet the increasingly insistent demand to make sophisticated assessments of companies' risk exposure. It provides the latest methods for:

  • Measuring and transferring credit risk
  • Increasing risk-management transparency
  • Implementing an organization-wide Enterprise risk Management (ERM) approach

Michel Crouhy is head of research and development at NATIXIS and the founder and president of the NATIXIS Foundation for Quantitative Research.
Dan Galai is the Abe Gray Professor of Finance and Business Administration at the School of Business Administration, the Hebrew University in Jerusalem.
Robert Mark is the Founding Chief Executive Officer of Black Diamond Risk which provides corporate governance, risk management consulting, risk software tools, and transaction services.

  • Sales Rank: #155066 in Books
  • Brand: Brand: McGraw-Hill
  • Published on: 2014-01-07
  • Original language: English
  • Number of items: 1
  • Dimensions: 9.20" h x 2.00" w x 6.50" l, 2.05 pounds
  • Binding: Hardcover
  • 672 pages
Features
  • Used Book in Good Condition

About the Author
Dr. Michel Crouhy is Senior Vice President, Global Analytics, Market Risk Management Division at Canadian Imperial Bank of Commerce (CIBC). Prior to this he was a Professor of Finance at HEC. He has been a visiting professor at Wharton School where he received his Ph.D. He has extensively published in academic journals and is also the associate editor of the Journal of Derivatives, the Journal of Banking and Finance. He is also on the editorial board of the new Journal of Risk.

Dr. Dan Galai is the Abe Gray Professor of Finance and Business Administration at Hebrew University. He has been a visiting professor of Finance at INSEAD, and also has taught at UCLA and the University of Chicago where he received his Ph.D. He has consulted for the Chicago Board of Exchange and the American Stock Exchange. He has published numerous articles in leading business and finance journals and was the winner of the First Annual Pomeranze Prize for excellence in options research presented by the CBOE.

Most helpful customer reviews

3 of 3 people found the following review helpful.
Great book, a must read
By carmel
an easy to follow book covering all areas of risk. I recommend the book to anyone working in the financial industry but most important to regulators

1 of 1 people found the following review helpful.
... thorough and relevant for the current economy after the Great
By Erik Torseth
Very thorough and relevant for the current economy after the Great Recession

0 of 0 people found the following review helpful.
Five Stars
By andras szanto
thanks

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Friday, October 3, 2014

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Education and Social Change: Contours in the History of American Schooling

  • Binding: Hardcover

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