Chebyshev’s inequality is a probability theorem used to characterize the dispersion or spread of data away from the mean. It was developed by a Russian mathematician called Pafnuty Chebyshev. The theorem states that:

The coefficient of variation, CV, is a measure of spread that describes the amount of variability of data relative toits mean. It has no units, and as such, we can use it as an alternative to the standard deviation to…

[vsw id=”alD9eAT2lQU” source=”youtube” width=”611″ height=”344″ autoplay=”no”] Skewness refers to the degree of deviation from a symmetrical distribution, such as the normal distribution. A symmetrical distribution has identical shapes on either side of the mean. Distributions that are asymmetrical have unequal…

Kurtosis refers to measuring the degree to which a given distribution is more or less ‘peaked’ relative to the normal distribution. The concept of kurtosis is very useful in decision-making.  In this regard, we have 3 categories of distributions:

Both arithmetic return and geometric return are methods commonly used to calculate the yield on a given investment. However, the return that really matters is the geometric return, not the arithmetic return. A good understanding of the difference between the…

Probability is a measure of the likelihood that something will happen. We usually express probabilities as percentages, from 0 (impossible to happen) to 100% (guaranteed). In fact, we can express almost any event as a probability, e.g., the likelihood that…

[vsw id=”hu47ZbsskEw” source=”youtube” width=”611″ height=”344″ autoplay=”no”] Defining properties of a probability refer to the rules that constitute any given probability. They are outlined below.

[vsw id=”hu47ZbsskEw” source=”youtube” width=”611″ height=”344″ autoplay=”no”] Odds for and against an event represent a ratio of the desired outcomes versus the field. In other words, the odds for an event refer to the ratio of the number of ways the…