12/06/2022 | By: FDS
Monte Carlo simulations are mathematical techniques that make it possible to simulate complexity and uncertainty in models to obtain unexpected results. They are commonly used in financial models to predict the impact of risk and uncertainty on the outcome of an investment. They use a combination of multiple random variables to produce a range of outcomes that can then be analyzed to make the best possible decision.
12/06/2022 | By: FDS
The least squares method is a procedure for fitting data to a mathematical function. It is commonly used in statistical analysis to estimate the parameters of a given function from a set of observed data points. The procedure consists of minimizing the deviation between the observed values and the predicted values by adjusting the parameters of the function.
12/06/2022 | By: FDS
Markov chains are a mathematical approach used to model random behavior. They are often used to simulate random processes based not only on the current situation, but also on previous events. They use probability distributions to predict how likely certain events are. This technique is commonly used in fields such as natural sciences, finance, artificial intelligence and data analysis.
12/06/2022 | By: FDS
The standard error is a mathematical quantity that describes the variance of a measured value of a sample. The standard error is often used to determine the accuracy of a sample. It indicates how much the measured values in a given sample deviate from the average value.
12/06/2022 | By: FDS
A regression equation is a mathematical equation used to determine a measure of the relationship between two or more variables. It is usually used to describe a linear relationship between variables in order to make predictions about the relationship between them.