Quants: Single Variable Linear Regression Analysis- This is the “least squares” method.
- Situational Example:
- “If a country’s broad stock i...
What is a Random Variable?
This video introduces you to the concept of random variables. It is one of the most important concepts in Finance. For example this can be viewed as the outcome of throwing a die where the process is fixed by the outcome is not.
Random variables describe key things like asset returns. We then use distribution functions to characterize the random variables.
Video by Khan Academy.
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