Quantitative Methods

COURSE

The title of this section really just says “applied statistics for financial analysis.” Some of the...

**Correlation** - Correlation is math-speak for relationships. Is there a relationship between t...

- This is the “least squares” method. - Situational Example: - “If a country’s broad stock i...

- Also called Standard Error of the Regression - Conceptually SEE helps to measure how imperfect...

- In all likelihood, your model will not perfectly predict Y. - The [SEE](https://financetrain.c...

- Typically noted as R2yx or R-squared in the stats report. - This value measures the percentage...

This is a tool to review a regression analysis and decompose the contribution of the variation in th...

Much of the concepts in simple regression are applicable, but watch out when determining your degree...

- For a multiple regression model, this value represents the percentage of total variation in Y th...

- A statistically significant Fcalc (i.e. one that passes the Fcritical threshold, based on your d...

**Heteroskedasticity** There are two types, Conditional and Unconditional. The type focused on in ...

- Handle qualitative independent variables with a quantitative proxy or use a dummy variable. - ...

**Simple Time Series Models** - This is basic trend modeling. A simple trend model can be expres...

- Auto-Regressive (AR) Time Series Models - This type of time series model utilizes a time perio...

- This is the case of an AR time series model where the predicted value is expected to equal the p...

- Autoregressive Moving Average Model (ARMA) = calculates an average value over a period of time t...

- **Simple Linear and Exponential Growth Models** – If an analyst looks at a time series plot grap...