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Statistics for Finance
Statistics for Finance

... Suppose that we have a Normal N (µ, σ 2 ) distribution with unkown mean and and standard deviation. We have seen so far how to produce estimators for these quantities. These estimators tell what is a most likely value for these parameters. However it is very unlikely that these estimators will produ ...
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... Therefore if there is no difference between the two samples then if the study has a p value of 0.05 then there is a 1/20 chance of it showing a difference between the two samples ( a type 1 error). If there is actually a difference between the two samples then a study with a power of 95% has a 1/20 ...
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... It is the first lottery game to randomly draw numbers from two drums. The game is set up so that each player chooses five different numbers from 1 to 59 and one Powerball number from 1 to 35. Twice per week 5 white balls are drawn randomly from a drum with 59 white balls, numbered 1 to 59, and then ...
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8.25 Hypothesis Testing: Normal Theory 8.26 Comparing experiments

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10 Normal Distribution Means: Student`s t Distribution

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Foundations of statistics

Foundations of statistics is the usual name for the epistemological debate in statistics over how one should conduct inductive inference from data. Among the issues considered in statistical inference are the question of Bayesian inference versus frequentist inference, the distinction between Fisher's ""significance testing"" and Neyman-Pearson ""hypothesis testing"", and whether the likelihood principle should be followed. Some of these issues have been debated for up to 200 years without resolution.Bandyopadhyay & Forster describe four statistical paradigms: ""(1) classical statistics or error statistics, (ii) Bayesian statistics, (iii) likelihood-based statistics, and (iv) the Akaikean-Information Criterion-based statistics"".Savage's text Foundations of Statistics has been cited over 10000 times on Google Scholar. It tells the following.It is unanimously agreed that statistics depends somehow on probability. But, as to what probability is and how it is connected with statistics, there has seldom been such complete disagreement and breakdown of communication since the Tower of Babel. Doubtless, much of the disagreement is merely terminological and would disappear under sufficiently sharp analysis.
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