by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science
What is Nonlinearity?Nonlinearity refers to a situation in which variables do not exhibit a linear relationship, but rather exhibit changes that are not proportional to the change of the input. Nonlinearity is studied in mathematics, statistics, and science and is...
by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science
Information Coefficient (IC)The information coefficient (IC) is a statistical measure of the merit of a predicted value as well as an evaluation of the proficiency or expertise of an investment analyst. Basically, the information coefficient measures the relationship...
by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science
What is a Rescaled Range Analysis?Rescaled range analysis is a statistical technique used in assessing the nature and analyze the variability of a time series. Harold Edwin Hurst, a British hydrologist developed the rescaled range analysis. At the time the analysis...
by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science
What is Path Dependence?Path dependency is a theory that explains how choices for present situations are made based on past behavior, knowledge, and history. This is true even if unrelated or irrelevant to the current situation.This theory also extends to products and...
by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science
What is Mean Reversion?Usually, mean reversion is a financial indicator stating that asset prices and historical returns will return to their mean or its average in due time. This mean or average may refer to the historical average of the price, returns or another...
by TheBusinessProfessor | Feb 23, 2025 | Research, Quantitative Analysis, & Decision Science
What is Prescriptive Analytics?Prescriptive analytics is a method of finding the best course of action for a given situation based on the available data. This form of analytics uses technology, mathematical method and simulation algorithms to help a business make the...
