Employment-to-Population Ratio
What is the Employment-to-Population Ratio? The employment-to-population ratio is a macroeconomic employment metric that shows the number of people employed as a percentage of the total working-age population. It is sometimes referenced as simply the employment-population ratio. The employment-to-population ratio can be applied to any size area or region but is most commonly calculated for...
Descriptive Statistics
What is Descriptive Statistics? The term “descriptive statistics” refers to the analysis, summary, and presentation of findings related to a data set derived from a sample or entire population. Descriptive statistics comprises three main categories – Frequency Distribution, Measures of Central Tendency, and Measures of Variability. Although descriptive statistics may provide information regarding a data...
Sampling Distribution
What is a Sampling Distribution? A sampling distribution refers to a probability distribution of a statistic that comes from choosing random samples of a given population. Also known as a finite-sample distribution, it represents the distribution of frequencies on how spread apart various outcomes will be for a specific population. The sampling distribution depends on...
Endogenous Variable
What is an Endogenous Variable? An endogenous variable is a variable that depends on other variables in a statistical and/or economic model. If the value changes for an endogenous variable, it is because there are changes to its relationships with other variables in the same model. Therefore, it is similar to a dependent variable because...
Stratified Random Sampling
What is Stratified Random Sampling? Stratified random sampling is a sampling method in which a population group is divided into one or many distinct units – called strata – based on shared behaviors or characteristics. Stratification refers to the process of classifying sampling units of the population into homogeneous units. In stratified random sampling, any...
Stochastic Modeling
What is Stochastic Modeling? In finance, stochastic modeling is used to estimate potential outcomes where randomness or uncertainty is present. By allowing for random variation in the inputs, stochastic models are used to estimate the probability of various outcomes. Stochastic modeling allows financial institutions to include uncertainties in their estimates, accounting for situations where outcomes...
Homoskedastic
What is Homoskedastic? Homoskedastic is the situation in a regression model in which the residual term for each observation is constant for all observations. It essentially means that as the value of the dependent variable changes, the error term does not vary much for each observation. However, when the residual term’s size differs across an...
Kairi Relative Index (KRI)
What is the Kairi Relative Index (KRI)? The Kairi Relative Index (KRI) is a type of oscillator indicator. It measures the deviation of an asset price from its daily average over a certain period of time, usually 10 to 20 days. The index was originally developed in Japan and now serves as a tool for...
Simple Random Sample
What is a Simple Random Sample? A simple random sample is an unbiased surveying technique that defines a subgroup of a population where the prospect of getting selected is equal for all the members of the population. Here, the sample selection process is entirely based on chance or luck. A simple random sample will yield...
Smart Beta ETF
What is a Smart Beta ETF? Smart beta ETF, a type of exchange-traded fund, that uses a blend of active and passive investing. The fund follows a rule-based approach for selecting investments to be included in a fund portfolio. A smart beta ETF expands on a traditional ETF, modifying the investments in the fund portfolio...
