Showing posts with label numeracy. Show all posts
Showing posts with label numeracy. Show all posts

13 May 2010

Are you smarter than a Fields medalist?

Take the Economist's numeracy quiz.

If you get all five questions right, you did better than Terence Tao.

The quiz is linked to this article, which states that people who are better at doing simple financial calculations seem to be less likely to fall behind on their mortgages.

Rather annoyingly, The Economist doesn't even tell you the names of the people who did the study. But it's Financial Literacy and Subprime Mortgage Delinquency: Evidence from a Survey Matched to Administrative Data, by Kristopher Gerardi, Lorenz Goette, and Stephan Meier. I will admit I have not read it, because it's 54 pages. (But yes, they controlled for income. My first thought was that maybe people who are better with numbers also tend to make more money.) Gerardi also writes for the Atlanta Fed's blog on real estate research.