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Mean Absolute Deviation
To avoid the problem of positive and negative deviations canceling out each other, we can use the Mean Absolute Deviation which is given by
Although Mean Absolute Deviation avoids the problem of positive and negative deviations canceling out, it is not popular in practice. This is because it neglects the difference between positive and negative deviations although the positive and negative signs are considered in calculating the mean which in turn is used to calculate the deviations. Further, it is difficult to deal with the quantity algebraically.
The file Midterm Data.xls has a tab labeled "Many vs. S&P" which presents historical price data for several assets, a volatility condition (VIDX = 1 if the NYSE volatility is grea
Harmonic Mean The harmonic mean also called harmonic average, in the total numbers of items of variable divided by the sum of r reciprocals of the values of the variable. In
Consider the linear transformation (a) Find the image of (3 , -2 , 2) under T. (b) Does the vector (5, 3) belong to the range of T? (c) Determine the matrix of the transf
how to analyzePractice-Based Evidence Back to the Future
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Examine properties of good average with reference to AM, GM, HM, MEAN MEDIAN MODE
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Origin and Development of probability Theory: The credit for origin and development of probability goes to the European gamblers of 17 th century. They used to gamble on gam
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Confirmatory factor analysis (CFA) seeks to determine whether the number of factors and the loadings of measured (indicator) variables on them conform to what is expected on the ba
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