The correlation coefficient for two variable
What happens if the correlation coefficient for two variables is -1 or 0 or +1?
Expert
Correlation is calculated using the correlation coefficient and represented by the letter r. Correlation coefficient can have values between perfect negative correlation (-1.0) to perfect positive correlation (+1.0). a) The closer r is to +1.0, the more will be chances that the two variables will try to move with each other at the same time. b) The closer r is to -1.0, the more will be the chances that two variables will try to move opposite each other at the same time. c) An r having zero value shows that the variable’s values are not related to each other at all. It is called as statistical independence.
What are the reasons that Inventory is sometimes thought of as a needed evil.
Why financial ratio analysis requires trend analysis and industry comparison?
Compare & contrast the several types of secondary market trading structures. There are two fundamental types of secondary market trading structures: dealer & agency. In a dealer market, the dealer serves as market maker for the securit
Illustrates an example of LIBOR Market Model?
A corporation enters in a five-year interest rate swap along with a swap bank wherein it agrees to pay the swap bank a fixed-rate of 9.75 percent annually on a notional amount of DM15,000,000 and attain LIBOR - ½ percent. As of the second reset date,
Explain the tool of Asymptotic analysis in Quantitative Finance.
What is GATT and what is its goal?
Can I employ real probabilities for pricing derivatives? Answer: Yes you can. But you may require moving away from classical quantitative finance.
Illustrates an example of Frechet distribution?
Determine the efficiency of finite differences?
18,76,764
1925889 Asked
3,689
Active Tutors
1450173
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!