📊 Statistical Methods
Master statistical techniques essential for financial analysis. Learn hypothesis testing, estimation, and statistical inference in finance.
Courses
Articles
How to Create a Covariance Matrix in R
August 1, 2023
What is Principal Component Analysis (With Steps)
July 31, 2023
Measures of Dispersion
October 31, 2022
Sampling Frame - Definition, Examples and Features
October 31, 2022
Representative Sampling
October 26, 2022
Sampling Methods in Statistics
October 26, 2022
Parameters and Statistics
October 14, 2022
Quantitative and Qualitative Variables in Statistics
October 14, 2022
Chi-square Test – Test for value of a single population variance
September 21, 2020 · Lesson
F-test - Test for the Differences Between Two Population Variances
September 21, 2020 · Lesson
Hypothesis Testing with t-statistic
September 21, 2020 · Lesson
Hypothesis Testing with z-statistic
September 21, 2020 · Lesson
Hypothesis Tests Concerning Variances
September 21, 2020 · Lesson
Non-parametric Tests
September 21, 2020 · Lesson
Paired Comparision Tests - Mean Differences When Populations are Not Independent
September 21, 2020 · Lesson
Selecting the Appropriate Test Statistic
September 21, 2020 · Lesson
Tests Concerning Differences in Means
September 21, 2020 · Lesson
p-Value in Hypothesis Testing
September 20, 2020 · Lesson
Historical Simulation Vs Monte Carlo Simulation
September 14, 2020 · Lesson
Relative Locations of Mean, Median and Mode
September 10, 2020 · Lesson
Skewness and Kurtosis
September 10, 2020 · Lesson
Financial Time Series Data
October 21, 2019 · Lesson
Modelling Probability of Default Using Logistic Regression
December 3, 2017
New Course - Financial Time Series Analysis with R
August 9, 2017
Understanding Hypothesis Testing and p-value
October 1, 2014
Decision Rule in Hypothesis Testing
July 5, 2014 · Lesson
Test Statistic, Type I and type II Errors, and Significance Level
July 5, 2014 · Lesson
Biases in Sampling
July 4, 2014 · Lesson
Confidence Interval for a Population Mean, when the Distribution is Non-normal
July 4, 2014 · Lesson
Confidence Interval for a Population mean, with an Unknown Population Variance
July 4, 2014 · Lesson
How to Read Student’s t Table
July 4, 2014 · Lesson
Student’s t Distribution
July 4, 2014 · Lesson
Confidence Interval Estimates
June 15, 2014 · Lesson
Confidence Interval for a Population mean, with a known Population Variance
June 15, 2014 · Lesson
Point Estimates
June 15, 2014 · Lesson
Parameter Estimation
June 12, 2014 · Lesson
Standard Error of the Sample Mean
June 12, 2014 · Lesson
Central Limit Theorem
June 11, 2014 · Lesson
Sampling Error
June 11, 2014 · Lesson
Simple Random Sampling and Sampling Distribution
June 11, 2014 · Lesson
Stratified Random Sampling
June 11, 2014 · Lesson
Time Series and Cross Sectional Data
June 11, 2014 · Lesson
Continuously Compounded Rate of Return
June 10, 2014 · Lesson
Calculating Probabilities Using Standard Normal Distribution
June 9, 2014 · Lesson
Discretely Compounded Rate of Return
June 9, 2014 · Lesson
Lognormal Distribution and Stock Prices
June 9, 2014 · Lesson
Safety-first Ratio
June 9, 2014 · Lesson
Shortfall Risk
June 9, 2014 · Lesson
Standard Normal Distribution
June 9, 2014 · Lesson
Confidence Intervals for a Normal Distribution
June 7, 2014 · Lesson
Continuous Uniform Distribution
June 7, 2014 · Lesson
Normal Distribution
June 7, 2014 · Lesson
Univariate Vs. Multivariate Distribution
June 7, 2014 · Lesson
Stock Price Movement Using a Binomial Tree
June 5, 2014 · Lesson
Tracking Error and Tracking Risk
June 5, 2014 · Lesson
Bernoulli and Binomial Distribution
May 24, 2014 · Lesson
Cumulative Distribution Function
May 24, 2014 · Lesson
Discrete Uniform Random Variable
May 24, 2014 · Lesson
Discrete Vs. Continuous Random Variable
May 24, 2014 · Lesson
Multiplication Rule of Counting
May 24, 2014 · Lesson
Permutation and Combination Formula
May 24, 2014 · Lesson
What is a Probability Distribution
May 24, 2014 · Lesson
Bayes’ Theorem
May 23, 2014 · Lesson
Variance and Standard Deviation of a Portfolio
May 23, 2014 · Lesson
Calculating Covariance and Correlation
May 22, 2014 · Lesson
Calculating Variance and Standard Deviation of Stock Returns
May 22, 2014 · Lesson
Conditional Expected Values
May 22, 2014 · Lesson
Expected Value of Investments
May 22, 2014 · Lesson
Expected Value of a Portfolio
May 22, 2014 · Lesson
Joint Probability of a Number of Independent Events
May 22, 2014 · Lesson
Unconditional Probability Using Total Probability Rule
May 22, 2014 · Lesson
Dependent Vs. Independent Events in Probability
May 21, 2014 · Lesson
Empirical, Subjective and Priori Probability
May 21, 2014 · Lesson
Joint Probability of Two Events
May 21, 2014 · Lesson
Multiplication, Addition and Total Probability Rules
May 21, 2014 · Lesson
Probability of Atleast One of the Events Occuring
May 21, 2014 · Lesson
State the Probability of an Event as Odds
May 21, 2014 · Lesson
Unconditional and Conditional Probabilities
May 21, 2014 · Lesson
Two Defining Properties of Probability
May 19, 2014 · Lesson
Chebyshev’s Inequality
May 16, 2014 · Lesson
Coefficient of Variation
May 16, 2014 · Lesson
Probability - Basic Terminology
May 16, 2014 · Lesson
Range and Mean Absolute Deviation
May 16, 2014 · Lesson
Sharpe Ratio
May 16, 2014 · Lesson
Variance and Standard Deviation
May 16, 2014 · Lesson
Calculating Arithmetic Mean
May 13, 2014 · Lesson
Calculating Geometric Mean
May 13, 2014 · Lesson
Calculating Harmonic Mean
May 13, 2014 · Lesson
Calculating Median and Mode of a Data Set
May 13, 2014 · Lesson
Calculating Weighted Average Mean
May 13, 2014 · Lesson
Quartiles, Quintiles, Deciles, and Percentiles
May 13, 2014 · Lesson
Descriptive Vs. Inferential Statistics
May 12, 2014 · Lesson
Measures of Central Tendency
May 12, 2014 · Lesson
Parameter, Sample Statistic, and Frequency Distribution
May 12, 2014 · Lesson
Properties of a Data Set (Histogram / Frequency Polygon)
May 12, 2014 · Lesson
Relative Frequencies and Cumulative Relative Frequencies
May 12, 2014 · Lesson
Types of Measurement Scales
May 12, 2014 · Lesson
How to Calculate Annualized Standard Deviation
October 16, 2013
How to Read Student's t Distribution Table (With PDF)
July 3, 2013
What is Hypothesis Testing
July 3, 2013 · Lesson
Constructing Binomial Tree to Describe Stock Price Movement
June 30, 2013
Why Lognormal Distribution is Used to Describe Stock Prices
June 30, 2013
How to Construct a Frequency Distribution
June 25, 2013
Independent and Identically Distributed Variables
March 19, 2013 · Lesson
Linear Combinations of Random Variables
March 19, 2013 · Lesson
Bayes Theorem – Calculating Conditional Probabilities
March 18, 2013
Interpretation of Skewness, Kurtosis, CoSkewness, CoKurtosis
March 18, 2013
Paramteric vs Non-Parametric Distributions
March 14, 2013 · Lesson
Properties of Bernoulli Distribution
March 14, 2013 · Lesson
Properties of Log-Normal Distribution
March 14, 2013 · Lesson
Properties of Normal Distribution
March 14, 2013 · Lesson
Properties of Uniform Distribution
March 13, 2013 · Lesson
Calculate and Interpret Covariance and Correlations
March 11, 2013
Infinite Series and Its Applications
March 4, 2013
Taylor Series Expansion
March 4, 2013
FAQs on Quantitative Finance
February 26, 2013
Role of a Quantitative Modeler
February 1, 2013
How to Annualize Monthly Returns – Example
January 27, 2013
How to Calculate FCFF and FCFE
January 25, 2013
How to Use the Rule of 72 Formula
December 26, 2012
Question: Performance Measurement Using Index Model Regression
December 14, 2012
Handbook on Securities Statistics
December 3, 2012
Student’s t Distribution
September 24, 2012
Stock Market Distribution
September 20, 2012
What is Binomial Distribution (With Formula)?
September 9, 2012
Probability Density Functions
September 9, 2012
ANOVA Table in Regression
September 2, 2012 · Lesson
Standard Error in Linear Regression
September 2, 2012 · Lesson
Using LINEST() Function in Excel for Multivariate Regression
September 2, 2012 · Lesson
Ordinary Least Squares (OLS)
August 30, 2012 · Lesson
Sample Regression Function (SRF)
August 30, 2012 · Lesson
Coefficient of Determination (R-Squared)
August 29, 2012 · Lesson
Introduction to Linear Regression
August 29, 2012 · Lesson
Standard Error of Estimate (SEE)
August 29, 2012 · Lesson
Central Limit Theorem
August 26, 2012 · Lesson
What is a Random Variable?
August 26, 2012 · Lesson
Baye’s Theorem
August 24, 2012 · Lesson
Probability: Permutations and Combinations
August 24, 2012 · Lesson
Correlation and Covariance
August 22, 2012 · Lesson
Type I and Type II Errors
August 22, 2012 · Lesson
Quantitative Finance: The Demystification of Stochastic Calculus
August 17, 2012
Central Limit Theorem (Distribution of Averages)
April 22, 2012
Probability Distribution Function for a Single Variable
April 22, 2012
ARMA Models and ARCH Testing
February 22, 2012 · Lesson
How to Select the Most Appropriate Time Series Model?
February 22, 2012 · Lesson
Auto-Regressive (AR) Time Series Models
February 21, 2012 · Lesson
Auto-Regressive Models - Random Walks and Unit Roots
February 21, 2012 · Lesson
Time Series Analysis: Simple and Log-linear Trend Models
February 21, 2012 · Lesson
Fcalc – the Global Test for Regression Significance
February 19, 2012 · Lesson
Qualitative and Dummy Variables in Regression Modeling
February 19, 2012 · Lesson
Regression Analysis and Assumption Violations
February 19, 2012 · Lesson
Multiple Regression Analysis
February 18, 2012 · Lesson
Multiple Regression and Coefficient of Determination (R-Squared)
February 18, 2012 · Lesson
Analysis of Variance or ANOVA
February 17, 2012 · Lesson
Coefficient of Determination (R-Squared)
February 16, 2012 · Lesson
Confidence Intervals (CI) for Dependent Variable Prediction
February 16, 2012 · Lesson
Quants: Single Variable Linear Regression Analysis
February 16, 2012 · Lesson
Standard Error of the Estimate or SEE
February 16, 2012 · Lesson
CFA L2: Quantitative Methods - Introduction
February 15, 2012 · Lesson
Quants: Correlation Analysis
February 15, 2012 · Lesson
Option Pricing Using Monte Carlo Simulation
August 15, 2011 · Lesson
Fibonacci Sequence and the Forex Market
In this article, we are going to discuss the basic mathematical notion behind Fibonacci theory, and we are going to discuss a basic Fib Strategy that works.
March 9, 2011
Risk of Two Cash Positions
October 21, 2010 · Lesson
Time Scaling of Volatility
October 21, 2010 · Lesson
Parametric VaR Estimation
October 20, 2010 · Lesson
Risk of a Single Cash Position
October 20, 2010 · Lesson
Statistical Foundations: Predicting Volatility
October 20, 2010 · Lesson
Statistical Foundations: Understanding Correlations
October 19, 2010 · Lesson
Statistical Foundations: Mean and Standard Deviation
October 18, 2010 · Lesson
Understanding Normal Distribution
October 17, 2010 · Lesson
PMT and Related Functions (IPMT, PPMT, CUMIPMT, CUMPRINC)
September 13, 2010
Continuous and Discrete Compounding
June 4, 2010