and 24.9 Normal Between 25 and 29.9 Overweight Over 30 Obese Correlation: When two or more variables move in sympathy with the other, then they are said to be correlated. If both variables move in the same direction, then they are said to be positively correlated. If the variables move in opposite direction, then they are said to be negatively correlated. If they move haphazardly, then there is no correlation between them. Correlation analysis deals with the following: Measuring the relationship
birthrate. While there seems to be a correlation between recession and lower birthrates this does not prove a causal link. To prove causation a theory must be proposed. The Value of Time (VOT) theory of fertility developed by Gary Becker states that demand for children is determined by the value of time of the wife in a family. Over time extensive amounts of evidence has been gathered supporting this theory. For example, household surveys show a negative correlation between wages earned by wives and
the amount of variation of the original variables that they explain (Everitt and Hothorn 2011). The Assumptions of PCA: Linearity- The reduced dimension should represent the linear combination of the original variables. The importance of mean and covariance- There is no guarantee that the directions of the maximum variance will contain good features for discrimination. The large variances have important dynamics- PCA assumes that components with larger variances correspond to interesting dynamics and
Summary This report analyses social and economic factors such as, risk of poverty, employment rate and population completed at least upper secondary education. In this report you can find summary of the data, descriptive statistics, correlation and regression analysis, which shows that poverty has a small negative relationship with employment rate and negative relationship with education. Thus, this means if countries would increase employment rate and increase number of people who finish secondary
wants to include in the portfolio, the asset return and its risk should be measured and he proposed to use mean return for asset return and risk by asset’s variance of return. Apart of variance and return, Markowitz model also takes into account the covariance between all assets. For this reason, the Markowitz framework is commonly referred to as mean-variance portfolio analysis. Much of the focus has been on mathematical theories behind uncertainty set construction and reformulations resulting in optimization
Linear Regression and Correlation Correlation and regression analyses are interrelated in an approach that they both deal with the relationship between variables. Correlation portrays the strength of a relationship between two variables, and is entirely proportioned, the correlation between X and Y is identical as the correlation among Y and X. However, if the two variables are associated it means that when one changes by a definite amount the other changes on an average by a certain amount. While
Contrariwise, portfolios with domestic and international equities provides considerable reduction of systematic risk, as assets from different economies present low correlation (Kristof, 2013; Redhead, 2008). Nonetheless, with growing globalisation, economies are increasingly becoming more interconnected, resulting in higher correlations/interactions among different financial markets. Therefore, the solution might be the partly domestic investment combined with assets from both emerging and developed
Psychologists study can result from more than one set of conditions, whether the observations refer to motor behaviors, verbal reports, or biological processes. This implies that the probability of discovering robust relations between a class of incentive and a category of outcome will be enhanced by looking for patterns of measures, rather than focusing on single, usually continuous, variables. (i) Infant temperament Persuasive support for the significance of patterns is found in research on high
portfolio allocation with smallest risk. His theory is summarized in the diagram given below. Mathematically, the optimization problem can be solved as follows. Assume that there are n assets. The expected rates of return are µ1,µ2,…,µn and the covariances are σ_(i,j) for i,j = 1,2,3,…,n. A portfolio is defined by a set of n weights wi = 1,…,n that sum to 1. To find minimum-variance, we fix the expected value at µ. Therefore the problem will
Dr. Harry Markowitz was the establisher of Portfolio selection, he won a share of the 1990 Nobel Prize for his research of "Financial Economics". Dr. Harry Markowitz invested the Portfolio selection and released it in 1959, which was the fundamental stage of Modern Portfolio Theory. According to Dr. Harry Markowitz and his Portfolio selection the process of selecting a portfolio can be divided to two levels. The first level begins with the investigation and proof of the future progress of available
a stock 's affectability of profits to changes in the business sector. It is a measure of efficient risk. Beta is a critical measure that is utilized as a key contribution for Discounted Cash Flow or DCF valuations. Recipe for Beta: Beta = B = Covariance of stock to the business sector/Variance of the business sector • If Beta = 1: If Beta of the stock is one, then it has the same level of risk as the stock business sector. Henceforth, if stock business sector (NASDAQ, NYSE and so forth) ascends
& Martin N. G. (2010). The nature of the relationship between personality traits and political attitudes. Personality and Individual Differences, 49, 306-316. doi:10.1016/j.paid.2009.11.013 Verhulst, B., Eaves, L. J., & Hatemi, P. K. (2012). Correlation not causation: the relationship between personality traits and political ideologies. American Journal of Political Science, 56(1), 34-51. doi:10.1111/j.1540-5907.2011.00568.x
Crystallization is one of the oldest unit operations widely used in industries for the separation and purification of solid products. It is a popular operation in majority of industries, including pharmaceutical, food, microelectronics and bulk and fine chemicals. The production process of the majority of all solid products includes at least one crystallization step during the synthesis or purification of intermediates or the final product. Since crystallization is often the first step when the pure
Mean-variance optimization was originally proposed by Markowitz in 1952, and it was not embraced by institutional investors until the mid-1970s to structure portfolios. This came as a result when Congress enacted ERISA, which imposed fiduciary liability on the stewards of pension assets for the first time in the history of America. In early 1972 through the end of 1974, the U.S. stock market was losing so much in real terms and investors were looking for better ways to manage risk and to avoid
mediator role of attitudes towards violence. Educational Sciences: Theory & Practice, 13(4), 2005-2015. doi:10.12738/estp.2013.4.1950 The authors of this article set out to show how different types of media and inter-parental conflict have a direct correlation to violence in adolescents.
say about the hypotheses (Neuman, 2003). An inspection of the raw data can be done by using the descriptive statistics to find obvious coding errors. The minimum and maximum values for each variable must fall within the admissible range. Pairwise correlations depict that all relationships must be in the expected direction. Meanwhile, listwise deletion of missing values indicates that the data can be used for analysis. An outlier is an observation that is unusually small or large. Outliers assist
‘‘If I have seen farther, it is by standing on the shoulders of giants.’’ is very truly coated by Sir Isaac Newton. Ideas gave way to idea. When Marconi invented wireless communication 100 years ago, we had no idea that one day life will seem to be impossible without it. It has penetrated each and every aspect of human life and has resulted into endless demands on bandwidth and spectrum. And by standing on the shoulders of giants, Teletarand Foschinigave the technique of MIMO system which would increase
distances of K standard deviations from the mean must be at least (1- 1 / k2) X 100% (Levine, et al., 2008). The covariance measures the strength of the linear relationship between two numerical variables (Levine, et al., 2008). The coefficient of correlation measures the relative strength of a linear relationship between two numerical variables (Levine, et al., 2008). The coefficient of correlation indicates the linear relationship between two numerical variables (Levine, et al., 2008).
risk. The article presents the optimization process in the theory by its inputs and outputs. The first inputs is the expected returns for each security, which can be estimated using historical returns. The second input is the covariance matrix that includes the correlation coefficient, the standard deviation, and the variance of each security. The last input is the constraints in the selection of portfolio such as the turnover of the portfolio or liquidity. On the other hand, the optimization process
Descriptive statistic is a statistic analysis to describe the characteristic of the respondents (Pallant, 2013). This study employs descriptive statistical analysis which gives value of mean, median and standard deviation of the respondents based on several indicators, such as sex/gender, educational level, position at work and income of the respondents. By using these indicators, the researcher describes the profile of the respondents. Hence, it can give some valuable information about the respondents