The tendency for low performers to remain in the game, while high performers are inadvertantly dropped from the running. This bias can be applied to a…

A characteristic describing a model's, test's or system's ability to effectively perform while its variables or assumptions are altered. A robust concept…

A statistical procedure that examines whether a string of data is occurring randomly given a specific distribution. The runs test analyzes the occurrence…

A subset containing the characteristics of a larger population. Samples are used in statistical testing when population sizes are too large for the test…

A type of bias caused by choosing non-random data for statistical analysis. The bias exists due to a flaw in the sample selection process, where a subset…

A process used in statistical analysis in which a predetermined number of observations will be taken from a larger population. The methodology used to…

A probability distribution of a statistic obtained through a large number of samples drawn from a specific population. The sampling distribution of a…

A statistical error to which an analyst exposes a model simply because he or she is working with sample data rather than population or census data. Using…

The process of estimating the expected value of a portfolio after a given period of time, assuming specific changes in the values of the portfolio's securities…

A statistical technique designed to even out periodic swings in statistics or movements in supply and demand related to changing seasons. Seasonal adjustments…

A characteristic of a time series in which the data experiences regular and predictable changes which recur every calendar year. Any predictable change…

A class of exchange-traded fund that invests in the stocks and securities of a specific sector, typically identified in the fund title. Most sector ETFs…

A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky marketable securities.Also…

A measure of dispersion for the values of a data set falling below the observed mean or target value. Semideviation is the square root of semivariance…

A measure of the dispersion of all observations that fall below the mean or target value of a data set. Semivariance is an average of the squared deviations…

A technique used to determine how different values of an independent variable will impact a particular dependent variable under a given set of assumptions…

A false presumption that two variables are correlated when in reality they are not. Spurious correlation is often a result of a third factor that is not…

The likelihood that a result or relationship is caused by something other than mere random chance. Statistical hypothesis testing is traditionally employed…

A type of mathematical analysis involving the use of quantified representations, models and summaries for a given set of empirical data or real world…

A method of financial modeling in which one or more variables within the model are random. Stochastic modeling is for the purpose of estimating the probability…

A method of sampling, which involves the division of a population into smaller groups, known as strata. In stratified random sampling, the strata are…

A probability derived from an individual's personal judgment about whether a specific outcome is likely to occur. Subjective probabilities contain no…

A method of selecting sample members from a larger population according to a random starting point and a fixed, periodic interval. Typically, every "nth…

A type of probability distribution that is theoretical and resembles a normal distribution. A T distribution differs from the normal distribution by its…

A form of portfolio risk that arises when the possibility that an investment will move more than three standard deviations from the mean is greater than…

A ratio developed by Gerald Cassidy and other analysts at RDC Capital Markets to measure the credit problems of particular banks or regions of banks. The…

A mathematical formula relating to the long-term growth of capital developed by John Larry Kelly Jr. The formula was developed by Kelly while working…

A sequence of numerical data points in successive order, usually occurring in uniform intervals. In plain English, a time series is simply a sequence…

An implication surrounding the use of time-series data in which the final statistical conclusion can change based on to the starting or ending dates of…

A statistical term used within the context of hypothesis testing that describes the error that occurs when one accepts a null hypothesis that is actually…

The probability that an event will occur, not contingent on any prior or related results. An unconditional probability is the independent chance that…

A measure of employment and labor utilization in the economy that looks at how well the labor force is being utilized in terms of skills, experience and…

A monthly statistic released nationally that details the number of unsold homes expressed in the time (in months) it would take to sell them at current…

A method of modeling interest rate movement that describes the movement of an interest rate as a factor of market risk, time and equilibrium value that…

A dollar-weighted average measuring the age of the individual loans in a mortgage pass-through or pooled security, such as Ginnie Mae or a Freddie Mac…

A method of averaging that initially replaces the smallest and largest values with the observations closest to them. After replacing the values, a simple…