What is Level of Measurement? In statistics, level of measurement is a classification that relates the values that are assigned to variables with each other. In other words, level of measurement is used to describe information within the values. Psychologist Stanley Smith is known for developing four levels of measurement: nominal, ordinal, interval, and ratio….
What are Arbitrage Free Term Structure Models? Arbitrage Free Term Structure Models (also known as No-Arbitrage Models) are used to generate the true stochastic interest rate generating process by using real market data. Unlike equilibrium term structure models, which make certain assumptions about the true interest rate generating process to determine the correct theoretical term…
What are Equilibrium Term Structure Models? Equilibrium Term Structure Models (also known as Affine Term Structure Models) are stochastic interest rate models used to estimate the correct theoretical term structure. Equilibrium term structure models estimate the stochastic process that describes the dynamics of the yield curve (term structure). The models identify mis-pricing in the bond…
What is Utilitarianism? Utilitarianism is a normative theory of ethics that states that the ethical and moral justness of an action depends only on the consequences of that action. An action that increases everyone’s utility is morally and ethically just, whereas an action which decreases everyone’s utility is morally and ethically unjust. Utility is a…
What is Customer Satisfaction? Customer satisfaction is the degree to which products or services provided by a company meet a customer’s expectations. In other words, customer satisfaction is how satisfied a customer is after doing business with a company. Customer satisfaction not only measures how happy a customer is with their transactions with the business,…
What are Meeting Minutes? Meeting minutes are notes that are recorded during a meeting. They highlight the key issues that are discussed, motions proposed or voted on, and activities to be undertaken. The minutes of a meeting are usually taken by a designated member of the group. Their task is to provide an accurate record…
What is Extrinsic Motivation? Extrinsic motivation refers to behavior that is driven by external factors, such as a reward or avoidance of negative outcomes. Money is the most obvious example of an extrinsic motivation. Extrinsic motivation factors can be either tangible and intangible. Tangible factors are factors with a physical form. Any type…
What is Vicarious Liability? Vicarious liability is a legal term used to explain the legal responsibility one party may hold for actions that cause harm, even if they aren’t the party that directly caused the harm. Also sometimes referred to as imputed liability, vicarious liability states that any party who is in an authoritative legal…
What is a Pyramid Scheme? A pyramid scheme is an unsustainable business model in which original investors make money by recruiting others rather than by selling actual products or services. The model works by asking new investors to make an upfront payment so that they can be allowed to join the scheme. The money received…
What is a Ponzi Scheme? A Ponzi scheme is considered a fraudulent investment program. It involves using payments collected from new investors to pay off the earlier investors. The organizers of Ponzi schemes usually promise to invest the money they collect to generate supernormal profits with little to no risk. However, in the real sense,…
