What is blocking?
- Problem: We don't know \( \tau \) or it is too expensive to compute
- Solution: Make a plot of std. dev. as a function of blocksize
- The estimate of std. dev. of correlated data is too low \( \to \) the error will increase with increasing block size until the blocks are uncorrelated, where we reach a plateau
- When the std. dev. stops increasing the blocks are uncorrelated