Nonlinear Regression
What is Nonlinear Regression? Nonlinear regression is a mathematical model that fits an equation to certain data using a generated line. As is the case with a linear regression that uses a straight-line equation (such as Ỵ= c + m x), nonlinear regression shows association using a curve, making it nonlinear in the parameter. A...
Nonparametric Statistics
What is Nonparametric Statistics? Nonparametric statistics is a method that makes statistical inferences without regard to any underlying distribution. The method fits a normal distribution under no assumptions. Habitually, the approach uses data that is often ordinal because it relies on rankings rather than numbers. Nonparametric statistics can be contrasted with parametric statistics. The latter...
Nonparametric Method
What is a Nonparametric Method? A nonparametric method is a mathematical approach for statistical inferences that do not consider the underlying assumptions on the shape of the probability distribution of the observation under study. It estimates relevant statistical quantities or offers a general method for testing and validating covariate data under fewer conditions than the...
Nonlinearity
What is Nonlinearity? Nonlinearity is a statistical term that describes the relationship between dependent and independent variables. It describes a link that cannot be expressed with a straight line. If a system does not follow the linearity theorem, it is referred to as nonlinear. A linear relationship is, therefore, one that can be expressed using...
Geometric Mean
What is Geometric Mean? The geometric mean is the average growth of an investment computed by multiplying n variables and then taking the nth –root. In other words, it is the average return of an investment over time, a metric used to evaluate the performance of a single investment or an investment portfolio. Why use...
Hypothesis Testing
What is Hypothesis Testing? Hypothesis Testing is a method of statistical inference. It is used to test if a statement regarding a population parameter is statistically significant. Hypothesis testing is a powerful tool for testing the power of predictions. A Financial Analyst, for example, might want to make a prediction of the mean value a...
Cohort Analysis
What is Cohort Analysis? Cohort Analysis is a form of behavioral analytics that takes data from a given subset, such as a SaaS business, game, or e-commerce platform, and groups it into related groups rather than looking at the data as one unit. The groupings are referred to as cohorts. They share similar characteristics such...
Non-Sampling Error
What is Non-Sampling Error? Non-sampling error refers to an error that arises from the result of data collection, which causes the data to differ from the true values. It is different from sampling error, which is any difference between the sample values and the universal values that may result from a limited sampling size. Non-sampling...
Poisson Distribution
What is the Poisson Distribution? The Poisson Distribution is a tool used in probability theory statistics to predict the amount of variation from a known average rate of occurrence, within a given time frame. In other words, if the average rate at which a specific event happens within a specified time frame is known or...
Variance Inflation Factor (VIF)
What is the Variance Inflation Factor (VIF)? The Variance Inflation Factor (VIF) measures the severity of multicollinearity in regression analysis. It is a statistical concept that indicates the increase in the variance of a regression coefficient as a result of collinearity. Variance Inflation Factor and Multicollinearity In ordinary least squares (OLS) regression analysis, multicollinearity exists...
