[vsw id=”hu47ZbsskEw” source=”youtube” width=”611″ height=”344″ autoplay=”no”] The conditional expectation, in the context of investments, refers to the expected value of an investment given a certain set of real world events that are relevant to that particular investment. This means that…

[vsw id=”hu47ZbsskEw” source=”youtube” width=”611″ height=”344″ autoplay=”no”] A tree diagram is a visual representation of all possible future outcomes and the associated probabilities of a random variable. Tree diagrams are particularly useful when we have several possible outcomes. They can help…

Simple Random Sampling Simple random sampling, also called chance selection, refers to a method of sample collection in which each element in the population is given an equal chance of being included in the sample. In other words, all the…

[vsw id=”mgY_3CHHYBw” source=”youtube” width=”611″ height=”344″ autoplay=”no”] Sampling error is the statistical error that occurs when an analyst selects a sample that is not representative of the population as a whole. In other words, it is the difference between the observed…

Simple random and stratified random sampling are both sampling techniques used by analysts during statistical analyses. Simple Random Sampling Simple random sampling involves the selection of a sample from an entire population such that each member or element of the…

[vsw id=”mgY_3CHHYBw” source=”youtube” width=”611″ height=”344″ autoplay=”no”] The central limit theorem asserts that when we have simple random samples each of size n from a population with a mean μ and variance σ2, the sample mean X approximately has a normal…

[vsw id=”mgY_3CHHYBw” source=”youtube” width=”611″ height=”344″ autoplay=”no”] The standard error (SE) of the sample mean refers to the standard deviation of the distribution of the sample means. It gives analysts an estimate of the variability they would expect if they were…