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Lesson 11 - hedge fund analysis
Lesson 11 - hedge fund analysis

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Simple linear regression and correlation analysis

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... although a safe bet is that most statisticians would be more comfortable with a procedure which produced the model y=O and identified two outliers. Dennis Boos of North Carolina State University suggested the following method of constructing examples for multiple linear regression models. For exampl ...
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... benefit liability is 75% of spending from $250 to $2250, about 15% above $5100, and 0% elsewhere. • The structure developed for modeling spending has been re-estimated on the same data set, with the standard benefit structure applied to each enrollee’s spending. • This is the Plan Liability model. ( ...
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... height for any particular x value is the expected value of Y for that value of x. The slope β1 of the true regression line is interpreted as the expected (average) change in Y associated with a 1-unit increase in the value of x. (This is equivalent to saying “the change in average (expected) Y assoc ...
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EECS833 Facies classification problem

... parameter of 0.1-1, and 100 iterations. The error will be higher than you may be used to so you will not be training towards a specified target error rate and will want to limit the iterations (epochs). You might start with something simple and then experiment. Required: 1. Two trained neural networ ...
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Data assimilation

Data assimilation is the process by which observations are incorporated into a computer model of a real system. Applications of data assimilation arise in many fields of geosciences, perhaps most importantly in weather forecasting and hydrology. The most commonly used form of data assimilation proceeds by analysis cycles. In each analysis cycle, observations of the current (and possibly past) state of a system are combined with the results from a numerical model (the forecast) to produce an analysis, which is considered as 'the best' estimate of the current state of the system. This is called the analysis step. Essentially, the analysis step tries to balance the uncertainty in the data and in the forecast. The result may be the best estimate of the physical system, but it may not the best estimate of the model's incomplete representation of that system, so some filtering may be required. The model is then advanced in time and its result becomes the forecast in the next analysis cycle. As an alternative to analysis cycles, data assimilation can proceed by some sort of nudging process, where the model equations themselves are modified to add terms that continuously push the model towards observations.
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