20140105

entropy


 
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TERM OF THE DAY

entropy

In simple terms, the measure of the level of disorder in a closed but changingsystem, a system in which energy can only be transferred in one direction from an ordered state to a disordered state. Higher the entropy, higher the disorder and lower the availability of the system's energy to do useful work. Although theconcept of entropy originated in thermodynamics (as the 2nd law) and statistical mechanics, it has found applications myriad of subjects such ascommunicationseconomicsinformation science and technology, linguistics, music. In day-to-day life it manifests in the state of chaos in a household or officewhen effort is not made to keep things in order.
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Usage Example
Market analysts may study the level of entropy of a stock or security to determine how volatile it is and how likely it is to behave in the market.