Module 2 Flashcards
The harmonic mean is used to calculate:
average share cost purchased over time
average price/unit
The geometric mean is used to calculate:
investment returns over multiple periods
compound growth rates
Used to visualize a data set based on quantiles
Box and whisker plot
The arithemetic mean is used to calculate:
the average returns over a one-period time horizon
Panel data is a combination of:
cross-sectional (columns)
time-series (rows)
displays the cumulative relative or absolute frequency distribution in columns (bars) or lines
Cumulative (relative or absolute) frequency distribution chart
Published ratings on stocks ranging from 1 (strong sell) to 5 (strong buy) are examples of which measurement scale?
ordinal, sorts data into categories that are ordered with respect to some characteristic, but numbers cannot be used to perform calculations
Categorical data that can be logically ordered or ranked
ordinal data
Categorical values that are not amenable to being organized in a logical order
nominal data
data that can be measured and can take on any numerical value in a specified range of values
continuous data
consist of observations through time on one or more variables for multiple observational units
panel data
a list of the observations of a specific variable from multiple observational units at a given point in time
cross-sectional data
sequence of observations of a specific variable collected over time and at discrete and typically equally spaced intervals of time
time-series data
Fatter tails in a distribution means there’s a higher probability of _____?
outliers
more data in the tails
shows more risk of expected value being further from the mean
The sum of frequencies for a row or column for the attribute
Marginal frequency
