What is Expected Value? Expected value refers to the anticipated value of a variable. It represents a generalization of the weighted average of a variable. Other names used for the expected value of a variable are expectation, mean, average, first moment, or mathematical expectation. While mostly associated with economics and …

What is Median? In mathematics, the median represents the middle point of a sorted list of numbers. In a way, it shows the average of a given set of numbers. For example, for a random set {12, 13, 18, 10, 5, 2, 9, 6, 15, 14, 3}, the median will …

What is Arithmetic Mean? The arithmetic mean is a term used in mathematics and statistics to describe the sum of a collection of numbers divided by the count of numbers. Simply put, the arithmetic mean is the average of a set of numbers. The arithmetic mean is a crucial concept …

For processes that involve analyzing a high amount of data, sampling is a critical process. However, for it to be effective, the user must select the sample properly. Nonetheless, it might not be possible to do so because some bias may exist when users choose a sample from a given …

The selection of an appropriate sample size is often a debatable topic. When selecting samples, it is crucial to choose correctly, so that the results obtained are not biased. However, many issues can result in a biased selection of samples and, therefore, result in a lower quality of parameter estimates. …

The Central Limit Theorem (CLT) is a concept from statistics, which states that the sample mean distribution of a random variable approaches a normal distribution as the sample size increases. Briefly, it suggests that the sampling distribution of the mean resembles normal distribution with an increase in the size of …

Normal distribution is a term commonly used in the field of social sciences. Another name for it is the Gaussian or Gauss distribution. Similarly, it is also a term closely associated with the Central Limit Theorem. The normal distribution represents a probability distribution that symmetric (having positive and negative values) …

The log-normal distribution is a term associated with statistics and probability theory. Similarly, another name for the log-normal distribution is Galton distribution. The log-normal distribution represents a continuous distribution of random variables with normally distributed logarithms. It follows the concept that instead of having normally distributed original data, the logarithms …

The random walk is a phenomenon used in statistics, which suggests a variable follows no discernible trend and moves at random. It also has an application in trading and finance. In the case of investing, the theory suggests that the changes in stock prices are independent of each other and …

Regression analysis consists of a set of statistical methods often used to estimate the relationship between two variables, one independent and the other dependent. It is a useful tool in several cases, especially for modeling and forecasting. Mostly used in statistics, regression analysis can also be beneficial in finance and …