Non-linearity is a mathematical term that describes a situation where the relationship between the independent variable and the dependent variable cannot be predicted along a straight line.
Certain classes of investments, such as options, exhibit a high degree of non-linearity, which can make these investments more chaotic.
Investors in asset classes that exhibit a high level of non-linearity often use sophisticated modeling techniques to estimate the amount of potential loss or gain that their investment could incur over time.
The chi-square statistic (χ2) is a measure of the difference between the observed and expected frequencies of the outcomes of a set of events or variables.
The Poisson distribution, named after the French mathematician Siméon Denis Poisson, can be used to estimate how many times an event can occur within “X” time periods.
The posterior probability in Bayesian statistics is the revised or updated probability of an event occurring after new information has been taken into account.
Unconditional probability reflects the probability that some event will occur without taking into account any other possible influences or previous results.
The 90/10 retirement investment strategy involves investing 90% of investment capital in low-cost S&P 500 index funds, and the remaining 10% in short-term government bonds.
The chief operating officer (COO) is the senior officer tasked with overseeing the day-to-day administrative and operational functions of the business.