Quant Sampling And Estimation

Question 1

Data Mining

Answer 1

The practice of determine a model by extensive searching through a data set for statistically significant patterns

Question 2

Degree of Confidence

Answer 2

The probability that a confidence interval includes the unknown population parameter

Question 3

Degrees of Freedom (df)

Answer 3

The number of independent observations used

Question 4

Estimate

Answer 4

The particular value calculated from sample observations using an estimator

Question 5

Estimator

Answer 5

An estimation formula; the formula used to compute the sample mean and other sample statistics are examples of estimators

Question 6

Indexing

Answer 6

An investment strategy in which an investor constructs a portfolio to mirror the performance of a specified index

Question 7

Inter generation data mining

Answer 7

A form of data mining that applies information developed by previous researchers using a dataset to guide current research using the same or related data set

Question 8

Longitudinal data

Answer 8

Observations on characteristics of same observational unit through time

Question 9

Look ahead bias

Answer 9

A bias caused by using information that was unavailable on the test date

Question 10

Lower bound

Answer 10

The lowest possible value of an option

Question 11

Monetary policy

Answer 11

Actions taken by a nations central bank to affect aggregate output and prices though changes in bank reserves, reserve requirements, or its target interest rate

Question 12

Out of sample test

Answer 12

A test of a strategy or model using a sample outside the time period on which the strategy or model was developed

Question 13

Panel data

Answer 13

Observations through time on a single characteristic of multiple observational units

Question 14

Parameter

Answer 14

A descriptive measure computed from or used to describe a populating of data, conventionally represented by Greek letters

Question 15

Point estimate

Answer 15

A single numerical estimate of an unknown quantity, such as a population parameter

Question 16

Sample selection Bias

Answer 16

Bias introduced by systematically excluding some members of the population according to a particular attribute - for example, the bias introduced when data availability less to certain observations being excluded from the analysis

Question 17

Sampling

Answer 17

The process of obtaining a sample

Question 18

Sampling distribution

Answer 18

The distribution of all distinct possible values that a statistic can assume when computed from samples of the same size randomly drawn from
The same population

Question 19

Sampling error

Answer 19

The difference between the observed value of a statistic and the quantity it is intended to estimate

Question 20

Sampling plan

Answer 20

The set of rules used to select a sample

Question 21

Sharpe ratio

Answer 21

The average return in excess of the risk free rate divided by the standard deviation of return; a measure of the average excess return earned per unit of standard deviation of return

Question 22

Simple random sample

Answer 22

A subset of a larger population created in such a way that each element of the population has an equal probability of being selected to the subset

Question 23

Simple random sampling

Answer 23

The procedure of drawing a sample to satisfy the definition of a simple random sample

Question 24

Statistic

Answer 24

A quantity computed from or used to describe a sample of data

Question 25

Survivorship bias

Answer 25

The bias resulting from a test designed that fails to account for that gone bankrupt, merged or are otherwise no longer reported in a database

Question 26

Systematic sampling

Answer 26

A procedure of selecting every kth member until reaching a sample of the desired size. The sample that results from this procedure should be approximately random

Question 27

Time period bias

Answer 27

The possibility that when we use a time series sample our statistics conclusion may be sensitive to the starting and ending dates of the sample