Notes, summaries, assignments, exams, and problems for Mathematics

Fundamental Statistical Concepts

Estimates and Population Values

Estimates are statistics collected from samples and used to describe population values.

Scales of Measurement

Understanding the different scales of measurement is crucial for data analysis:

• Nominal Scale of Measurement: This is the simplest form of measurement, used when the dependent variable is qualitative. It categorizes data based on the name of some physical or psychological quality or characteristic rather than a numerical score.
• Ordinal Scale of Measurement: This is the simplest quantitative scale used to measure the dependent variable. Data are ranked in some order (such as highest to lowest, biggest to smallest, most important to least important), but it does not measure the

Clear, Consistent, Long-Term Goals

Google's mission statement is to organize the world's information and make it universally accessible and useful.

Inditex

One clear aspect of Inditex's strategy is its founder's vision for the future and unwavering belief in his work. A key goal was to create the best logistics system in the market—an innovative formula that placed garments in stores in under fifteen days, regardless of location.

Profound Understanding of the Competitive Environment

Tesla

Elon Musk's innovative technology company, Tesla, is known for producing high-quality, cutting-edge vehicles with high-end and creative features. Tesla has been changing the auto industry with its full self-driving capability cars: Model S, Model X, and Model... Continue reading "Long-Term Vision & Competitive Analysis: Case Studies" »

Are X and Y independent random variables?

Solution: First we calculate the marginal pdfs

Note that fX,Y (x, y) 6= fX(x) × fY (y). So they are not independent.

What is the conditional distribution of X, given Y = .50? What is the probability that less than 50% of the initiative 1 surveys are returned, given that 50% of the initiative 2 surveys are returned?

(c) Calculate E(X/Y = y). What is the expected proportion of initiative 1 surveys returned, given that 50% of the initiative 2 surveys are returned?

Three prisoners are informed by their jailer that one of them has been 1/3 1/2

First we label the prisoners as P1, P2 and P3. Suppose P1 asks the jailer to tell him privately whether P2 or P3 will be set free. Now we define the following events.

Ai... Continue reading "Probability and Statistics Problems and Solutions" »

Descriptive and Inferential Statistics

Descriptive Statistics

Descriptive statistics involve organizing, summarizing, and presenting data. This can include using:

• Graphs
• Frequencies
• Tables

Inferential Statistics

Inferential statistics involve drawing conclusions from data.

Example: Fitness Center Data Analysis

A fitness center wants to know the average time clients exercise each week.

Key Concepts:

• Population: All clients in the fitness center
• Sample: A group of clients from the fitness center
• Parameter: Population mean amount of time clients exercise each week
• Statistic: Sample mean amount of time clients exercise each week
• Variable (X): The amount of time one client exercises in the center each week
• Data: Values for X (e.g., 4 hours, 6 hours, 10 hours)

Important

Covariance

Covariance measures the directional relationship between the returns on two assets. A positive covariance means that asset returns move together, while a negative covariance means they move inversely.

Scatter Diagram

A scatter diagram is used to examine the relationship between both the axes (X and Y) with one variable. In the graph, if the variables are correlated, then the points drop along a curve or line. A scatter diagram or scatter plot gives an idea of the nature of the relationship. These relationships can include:

• Perfect positive correlation
• Perfect negative correlation
• High degree of positive correlation
• High degree of negative correlation
• Low degree of positive correlation
• Low degree of negative correlation
• No correlation

Karl Pearson

A. Property, Plant, and Equipment (PPE)

1. Acquisition

   Assets are recognized at their net price plus all necessary expenses incurred until the asset is in a condition ready for its intended use.

2. Production Costs

   Includes direct labor, direct material, utilities, and other indirect costs directly attributable to production. General overheads are typically excluded.

3. Financial Expenses

   Costs associated with generic sources of financing, such as loans, may be capitalized under specific conditions.

4. Renovation, Expansion, and Improvement

   Expenditures that expand the capacity or extend the useful life of an existing asset, or significantly improve its functionality, are capitalized as part of the asset's cost.

5. Repairs and Major Repairs

   Routine repairs and maintenance

PRINCIPLES OF DESIGN

They affect content and message.

1. Proximity

Proximity basically means space; unfortunately, most people simply try to fill up empty space. Space should be organized, so, information can be easily understood.

2. Alignment

Alignment is like rulers or margins. We need to avoid to use more than one alignment, and to use the centered alignment.

3. Repetition

There are many ways to create repetition: -Bullets, bold fonts, color, line, a design element… Repetition unifies and strengthens. It creates visual interest.

4. Contrast

There are many ways to create contrasts: -Large/small type, warm/cold colors, old/new fonts, and horizontal/vertical… Contrast has 2 purposes: 1. Create interest on a page. 2. Aid organization on a page

5.

1. The role of business statistics is to convert data into meaningful info.

Which of the following statements about the relationship between interest rates and bond prices is true?

1. There is an inverse relationship between bond prices and interest rates.
2. There is a direct relationship between bond prices and interest rates.
3. The price of short-term bonds fluctuates more than the price of long-term bonds for a given change in interest rates. (Assuming that coupon rate is the same for both)
4. The price of long-term bonds fluctuates more than the price of short-term bonds for a given change in interest rates. (Assuming that the coupon rate is the same for both)

Answer: I and IV only

Bond Duration

Consider a bond with a face value of $1,000, a coupon rate of 8%, a yield to maturity of 9%, and ten years to maturity. This bond's duration... Continue reading "Relationship between Interest Rates and Bond Prices" »

Vector Determination by Length and Angle

V = <||V|| Cosθ, ||V|| Sinθ> ---> ||V||Cosθi + ||V||Sinθj

Example:

a) Find the vector of length 2 that makes an angle of π/4 with the positive x-axis.

b) Find the angle that the vector V = -₃ i + j makes with the positive x-axis.

a) <||V||Cosθ , ||V||Sinθ> = <2cos45, 2sin45> ---> <₂, ₂>

b) Normalize... ||V|| = _{(-3)² + 1²} = ₄ = 2 -----> V/||V|| = <-_3/2 , 1/2> = <cosθ, sinθ> ----> cosθ = -_3/2, sinθ = 1/2 ---> θ = 5π/6

Dot Product

If U = <U₁, U₂> and V = <V₁, V₂>, then the dot product is U•V = U₁V₁ + U₂V₂.

Example:

a) U = <3, 5>, V = <-1, 2> -----> U•V = (3)(-1) + (5)(2) ---> U•V = -3 + 10 --> U•V = 7

b) U = &... Continue reading "Vector Operations, Dot and Cross Products, and Lines" »