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The nonparametric Bayesian inference approach to using the finite mixture distributions for modelling data suspected of the containing distinct groups of observations; this approach does not need the number of mixture components to be known in before. The basic idea is that the Dirichlet procedure induces a prior distribution over the partitions of the data which can then be combined with the prior distribution over parameters and chance. The distribution over partitions can be generated incrementally using Chinese restaurant procedure.
Range is the difference between the largest and smallest observations in the data set. Commonly used as an easy-to-calculate measure of the dispersion in the set of observations b
Lagrange Multiplier (LM) test The Null Hypothesis - H0: There is no heteroscedasticity i.e. β 1 = 0 The Alternative Hypothesis - H1: There is heteroscedasticity i.e. β 1
Canonical correlation analysis : A process of analysis for investigating the relationship between the two groups of variables, by ?nding the linear functions of one of the sets of
Models which make use of the smoothing techniques such as locally weighted regression to identify and represent the possible non-linear relationships between the explanatory and th
Point scoring is an easy distribution free method which can be used for the prediction of a response which is a binary variable from the observations on several explanatory variab
This is extension of the EM algorithm which typically converges more slowly than EM in terms of the iterations but can be much faster in the whole computer time. The general idea o
The variables resulting from the recoding categorical variables with more than two categories into the sequence of binary variables. Marital status, for instance, if originally lab
Martingale: In the gambling context the term at first referred to a system for recouping losses by doubling the stake after each loss has occured. The modern mathematical concept
Multiple comparison tests : Procedures for detailed examination of the differences between a set of means, generally after a general hypothesis that they are all equal has been rej
Institutional surveys are the surveys in which the primary sampling units are the institutions, for instance, hospitals. Within each of the sampled institution, a sample of the pa
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