“Let us remember the unfortunate econometrician who, in one of the major functions of his system, had to use a proxy for risk and a dummy for sex.”
I understand why the second part is funny (a dummy for sex can be understood as a sex doll), but I do not get the first part. I found that a proxy can mean either
- the authority to represent someone else, especially in voting; or
- a figure that can be used to represent the value of something in a calculation
It was the second meaning that the econometrician had in mind. But how does the first meaning fit in with risk? Or is there another meaning that makes a proxy for risk funny?