21 terms

Descriptive Statistics

Summary of a data set in the form of tables, graphs or the calculation of numerical measures.

Inferential Statistics

Extracting useful information from a sample to draw conclusions about a population.

Population

Complete collection of items

Sample

Subset of the population of interest.

Cross-sectional data

Values of a characteristic of many subjects at the same point in time or without regard to differences in time

Time-series data

Values of a characteristic of a subject over time.

Qualitative variables

Labels or names are used to identify the distinguishing characteristics of each observation

Quantitative variables

Meaningful numerical values are used to identify the distinguishing characteristic of each observation

Discrete variables

A countable number of values - whole numbers

Continuous variables

Can take on any value within an interval.

Frequency distribution

Groups data into categories and records the number of observations that fall in each category.

Relative frequency distribution

The proportion or fraction of observations in each category.

Cumulative frequency distribution

The number of observations that fall below the upper limit of each class.

Cumulative relative frequency distribution

The proportion or fraction of observations the fall below the upper limit of each class.

Scatterplot

A graphical tool that helps in determining whether or not two quantitative variables are related in some systematic way. Each point on the diagram represents a pair of observed values of the two variables.

Median

Middle value of a data set that has been arranged in ascending order. Especially useful when outliers are present.

Mode

Value in the data set that occurs with the most frequency. A data set may have no mode, one mode, or more than one mode.

Range

Range = Max - Min

Sharpe Ratio

Measure reward-per-unit-of-risk

z-score

Measures the relative location of the sample value of x.

Covariance and Correlation Coefficient

Measures that assess the direction and strength of a linear relationship between two variables.