What is the Total Probability Rule? The Total Probability Rule (also known as the Law of Total Probability) is a fundamental rule in statistics relating to conditional and marginal probabilities. The rule states that if the probability of an event is unknown, it can be calculated using the known probabilities of several distinct events. Consider…
What is Average Cost Basis? Average cost basis is defined as the means to attribute the purchase price to shares underlying a mutual fund or an account managed by a custodian (broker). It is calculated as the total amount paid to purchase the mutual fund or investment in a custodian account divided by the total…
What is the Voluntary Carbon Market? The voluntary carbon market enables private investors, governments, non-governmental organizations, and businesses to voluntarily purchase carbon offsets to offset their emissions. The largest category of buyers comprises private firms that purchase carbon offsets for resale or investment. Companies that are unable to reduce their emissions can purchase carbon offsets…
What is Anti-Dumping Duty? Anti-dumping duty is a tariff imposed on imports manufactured in foreign countries that are priced below the fair market value of similar goods in the domestic market. The government imposes anti-dumping duty on foreign imports when it believes that the goods are being “dumped” – through the low pricing – in…
What is Horizontal Addition? Horizontal addition is a summation strategy that breaks down the summands by taking note of the positional value and continuing with the addition. The sums in the addition chain do not mix the positional values, making it easier for students to comprehend the addition. When adding the broken-down values, the thousands…
What is a Tariff? A tariff is a form of tax imposed on imported goods or services. Tariffs are a common element in international trade. The primary reasons for imposing tariffs include (1) the reduction in the importation of goods and services by increasing their prices and (2) the protection of domestic producers. Forms of…
What is Absorption Rate? Absorption rate, a term commonly used in real estate, is the rate at which homes sell in an area over a time period. An absorption rate greater than 20% is associated with a seller’s market, while an absorption rate below 15% is associated with a buyer’s market. Formula for Absorption Rate…
What is the Weighted Mean? The weighted mean is a type of mean that is calculated by multiplying the weight (or probability) associated with a particular event or outcome by its associated quantitative outcome and then summing all the products together. It is very useful when calculating a theoretically expected outcome where each outcome has…
What is the International Chamber of Commerce (ICC)? Based in Paris, France, the International Chamber of Commerce (ICC) is an organization comprised of more than six million members from countries around the world, tasked primarily with representing and helping to establish rules that affect and govern the interests of individuals and organizations in every part…
What is Foreclosure? When a homeowner stops paying on a loan used to purchase a home, the home is deemed to be in foreclosure. What this ultimately means is that the ownership of the home switches from the homeowner to the bank or lender that provided the loan. During the initial stages of foreclosure, the…
