What is Central Tendency? Central tendency is a descriptive summary of a dataset through a single value that reflects the center of the data distribution. Along with the variability (dispersion) of a dataset, central tendency is a branch of descriptive statistics. The central tendency is one of the most quintessential concepts in statistics. Although it…
What is the Average Age of Inventory? The average age of inventory represents the average number of days that pass before a company sells its inventory balance. It is an important working capital efficiency metric that is also referred to as days’ inventory on hand (DOH). How to Calculate the Average Age of Inventory The…
What is a Vendor Take-Back Mortgage? A vendor take-back mortgage refers to a type of mortgage in which the buyer of a property obtains a loan from the seller to secure the sale of the property. It is also referred to as a seller take-back mortgage. Vendor take-back mortgages provide benefits to both the seller…
What are Independent Events? In statistics and probability theory, independent events are two events wherein the occurrence of one event does not affect the occurrence of another event or events. The simplest example of such events is tossing two coins. The outcome of tossing the first coin cannot influence the outcome of tossing the second coin….
What is the Nominal Effective Exchange Rate (NEER)? The nominal effective exchange rate (NEER) is a form of measuring a currency’s nominal exchange rate relative to a basket of other currencies using an unadjusted weighted-average calculation. NEER is also sometimes referred to as the “trade-weighted currency index.” NEER may be adjusted to account for the…
What are Mutually Exclusive Events? In statistics and probability theory, two events are mutually exclusive if they cannot occur at the same time. The simplest example of mutually exclusive events is a coin toss. A tossed coin outcome can be either head or tails, but both outcomes cannot occur simultaneously. Mutually exclusive events are commonly…
What is the Net International Investment Position (NIIP)? The Net International Investment Position (NIIP) is the balance value when external assets are adjusted for external liabilities. The external assets are the foreign assets owned by the country’s government, companies, and citizens. The external liabilities are the foreigners-owned domestic assets. The Net International Investment Position measures…
What are Indirect Taxes? Indirect taxes are basically taxes that can be passed on to another entity or individual. They are usually imposed on a manufacturer or supplier who then passes on the tax to the consumer. The most common example of an indirect tax is the excise tax on cigarettes and alcohol. Value Added…
