mikeyork
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Not entirely. My point is that although you can predict the moments from a theoretical distribution function the reverse is not true -- you cannot obtain the distribution function from the empirical moments.. That is why probability is fundamental.vanhees71 said:Well, here probability theory and statistics as you describe it were failing simply, because the assumptions of a certain model were wrong. It's not a failure of the application of probability theory per se. Hopefully, the economists learned from their mistakes and refine their models to better describe the real world. That's how empirical sciences work! If a model turns out to be wrong, you try to substitute it by a better one.