What is the Law of Large Numbers? In statistics and probability theory, the law of large numbers is a theorem that describes the result of repeating the same experiment a large number of times. The large numbers theorem states that if the same experiment or study is repeated independently a large number of times, the…
What is Insurance Deductible? Insurance deductible pertains to the amount of money on an insurance claim that you would pay before the coverage kicks in and the insurer pays. In other words, it’s the money that you would shell out of your own pocket before receiving insurance coverage. After paying your deductible, the insurance company…
What is a Government Shutdown? A government shutdown occurs when the US Congress does not approve or cannot resolve disagreements about the federal budget for the upcoming fiscal year. When the US Government shuts down, non-essential federal agencies cease operating, resulting in the non-delivery of services and non-payment of the salaries of government workers. During a…
What is Conditional Probability? Conditional probability is the probability of an event occurring given that another event has already occurred. The concept is one of the quintessential concepts in probability theory. Note that conditional probability does not state that there is always a causal relationship between the two events, as well as it does not…
What is the Bayes’ Theorem? In statistics and probability theory, the Bayes’ theorem (also known as the Bayes’ rule) is a mathematical formula used to determine the conditional probability of events. Essentially, the Bayes’ theorem describes the probability of an event based on prior knowledge of the conditions that might be relevant to the event….
What are Spreadsheet Risks? Spreadsheet risks do exist even in large businesses that use such programs. Though spreadsheets are considered among the most important and powerful tools for organizations and businesses over the past several decades, that doesn’t take away the fact that spreadsheets are subject to human errors. In addition, they can be easily…
What is a Bilateral Agreement? A bilateral agreement, also called a clearing trade or side deal, refers to an agreement between parties or states that aims to keep trade deficits to a minimum. It varies depending on the type of agreement, scope, and the countries that are involved in the agreement. Bilateral agreements can take…
What are Nonparametric Tests? In statistics, nonparametric tests are methods of statistical analysis that do not require a distribution to meet the required assumptions to be analyzed (especially if the data is not normally distributed). Due to this reason, they are sometimes referred to as distribution-free tests. Nonparametric tests serve as an alternative to parametric…
What is Nominal Data? In statistics, nominal data (also known as nominal scale) is a type of data that is used to label variables without providing any quantitative value. It is the simplest form of a scale of measure. Unlike ordinal data, nominal data cannot be ordered and cannot be measured. Dissimilar to interval or ratio…
