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Understanding Financial Formulas and Calculations

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Tutorial 1

If you get a positive value times a number,

You need to shift the decimal to the right as many times as the number specified.

If negative, move it to the right.

Simple interest formula = S = FV = P(1 + iK)

Compound interest formula = Sk = P(1 + i)^k

Sn = P(1 + I/T)^n
where I is interest
T is frequency of compounding per year
K is the number of years
N is the total number of periods - K T or TK

Depreciation Formula = Vo or P = Initial value,
Vk = P(1 - d)^k

Tutorial 2

1. 5 years 1 + r = (FV/PV)^(1/5)
(i) r = 10.38%
(ii) r = 10.47%
(iii) r = 10.51%
(iv) r = 10.52%
(v) r = 10.52%
2. 1 + r = (1 + 0.06/12)^8 ∙ (1 + 0.072/12)^4
1 + r = (1.005)^8 ∙ (1.006)^4
1 + r = (1.0407) ∙ (1.0242) = 1.06591
r = 6.59%

For an initial outlay of $1000, the net return is

... Continue reading "Understanding Financial Formulas and Calculations" »

Optimal Estimators, Dice Posterior & Statistical Problems

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Combine Independent Unbiased Estimators

Let d1 and d2 be independent unbiased estimators of θ with variances σ12 and σ22, respectively:

  • E[di] = θ for i = 1,2.
  • Var(di) = σi2.

Any estimator of the form d = λ d1 + (1 - λ) d2 is also unbiased for any constant λ.

The variance (mean square error for an unbiased estimator) is
Var(d) = λ2σ12 + (1 - λ)2σ22.

To minimize Var(d) with respect to λ, differentiate and set to zero:

d/dλ Var(d) = 2λσ12 - 2(1 - λ)σ22 = 0.

Solving gives the optimal weight

λ* = σ22 / (σ12 + σ22).


Question 1: Posterior PMF for a Third Dice Roll

Assume there are five dice with sides {4, 6, 8, 12, 20}. One of these five dice is selected uniformly at random (probability 1/5) and rolled twice. The two observed results are... Continue reading "Optimal Estimators, Dice Posterior & Statistical Problems" »

Statistical Learning and Linear Regression Essentials

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Introduction to Statistical Learning

Key Notation

  • Y: Response (dependent/output) variable - quantitative or qualitative
  • X₁,...,Xₚ: Predictors (features/covariates/independent variables)
  • p: Number of predictors
  • n: Number of observations
  • i: Subject index (i = 1,...,n)
  • j: Variable index (j = 1,...,p)
  • Data: (Yᵢ, Xᵢ), i = 1,...,n

Types of Learning

  • Supervised learning: Have both Y and X (prediction or inference) - PRIMARY FOCUS
  • Unsupervised learning: Have X but no Y

Model for Data

Yᵢ = f(Xᵢ) + εᵢ, i = 1,...,n
Assumptions: E(εᵢ) = 0, var(εᵢ) = σ², εᵢ are mutually independent
Properties: E(Yᵢ|Xᵢ) = f(Xᵢ), var(Yᵢ|Xᵢ) = σ²

Prediction vs Inference

PredictionInference
ˆY = ˆf(X)Understand relationship between Y and X
ˆf can be black
... Continue reading "Statistical Learning and Linear Regression Essentials" »

Essential Machine Learning Algorithms and Metrics

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Evaluation Metrics for ML Models

  • Accuracy: The ratio of correctly predicted instances.

  • Precision: Correct positive predictions divided by total predicted positives.

  • Recall: Correct positive predictions divided by actual positives.

  • F1 Score: The harmonic mean of precision and recall.

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K-Nearest Neighbors (KNN) Algorithm

  • A classification algorithm that works by finding the 'k' closest training examples to a data point.

  • Strengths: Simple to understand, effective for smaller datasets.

  • Weaknesses: Sensitive to irrelevant features and the scale of the data.

  • Applications: Image recognition, recommendation systems.

Ensemble Learning Techniques

  • Combines multiple models to improve predictive performance.

  • Methods:

    • Bagging (e.g., Random Forests)
    • Boosting (e.g., AdaBoost)
... Continue reading "Essential Machine Learning Algorithms and Metrics" »

Year 9 Algebra Essentials: Linear Equations Mastery

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1. Simplifying Algebraic Expressions

How to Simplify Algebraic Expressions

  • Multiply numbers and letters together.
  • Combine like terms (terms with the same letters and powers).

Example:
−2ac × 4bd = −8abcd

Example:
5ab − 8b²a + ba = 5ab − 8ab² + ab = −8ab² + 6ab


2. Expanding Brackets (Distributive Law)

How to Expand Brackets

  • Multiply everything inside the bracket by what is outside.

Example:
−4(x + 7) = −4x − 28

Example:
5(x − 3) + 2(6 − x) = 5x − 15 + 12 − 2x = 3x − 3


3. Solving Equations

How to Solve Equations

  • Get all variables (e.g., x's) on one side and numbers on the other.
  • Perform the same operation on both sides of the equation.

Example:
3x + 2 = 17
3x = 15
x = 5

Example:
9x − 8 = 4x + 7
5x = 15
x = 3


4. Solving Inequalities

How

... Continue reading "Year 9 Algebra Essentials: Linear Equations Mastery" »

Python Inheritance: Reusing Code with Parent and Child Classes

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Understanding Inheritance in Python

Inheritance allows a class to use and extend the properties and methods of another class. It promotes code reusability and reduces duplication. Think of it as “child learns from parent.” 👨‍👦‍💻

Code Duplication: Program Without Inheritance

When classes share common attributes or methods (such as first_name, last_name, and get_age), implementing them separately leads to redundant code, as shown below:

import datetime

class TennisPlayer:
    def __init__(self, fname, lname, birth_year):
        self.first_name = fname
        self.last_name = lname
        self.birth_year = birth_year
        self.aces = []

    def get_age(self):
        now = datetime.datetime.now()
        return now.year -
... Continue reading "Python Inheritance: Reusing Code with Parent and Child Classes" »

Matrices: multiplication, rank, determinant, inverse and Rouche-Frobenius theorem

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System Types
The systems of equations can be
classified by the number of solutions that can arise. According to that case may have the following cases:
· Incompatible system if it has no solution.
· Compatible system if you have any solution in this case can also distinguish between:
or compatible system determined when it has a finite number of solutions.
indeterminate
or compatible system when it admits an infinite set of solutions.
Fitting and classification:
Image
Calculating the rank of a matrix for determining
Image
1. We can rule a line if:.
· All the coefficients are zeros.
· There are two equal lines.
A line is proportional to another.
A line is a linear combination of others.
Delete the third column because it is a linear... Continue reading "Matrices: multiplication, rank, determinant, inverse and Rouche-Frobenius theorem" »

English Grammar and Vocabulary Exercises

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Part I: Complete the Following Table

Sentence TypeExample
AffirmativeCarlos is in the house.
NegativeCarlos isn't in the house.
QuestionIs Carlos in the house?
AffirmativeWe are 23 years old.
NegativeWe aren't 23 years old.
QuestionAre we 23 years old?

Part II: Complete the Following Sentences

  1. She is from the United States. She is American.
  2. She is from Nigeria. She is Nigerian.
  3. She is from Germany. She is German.
  4. They are from Egypt. They are Egyptian.
  5. We are from Canada. We are Canadian.

Part III: Select the Correct Sentence

  1. Select the correct sentence.
    • a) She lives with Carlos, and she works on Saturdays.
  2. Select the correct sentence.
    • c) They are running in the park.
  3. Select the correct sentence.
    • b) She is 20 years old.
  4. Select the correct sentence.
    • a) We always
... Continue reading "English Grammar and Vocabulary Exercises" »

Essential Accounting Concepts and Financial Reporting

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Fundamental Accounting Principles and Practices

Core Accounting Definitions

Assets = Liabilities + Owner’s Equity: This is the fundamental accounting equation, representing the balance of a company's financial position.

Double-Entry Accounting

The recording of both debit and credit parts of every transaction, ensuring the accounting equation remains balanced.

Objective Evidence Principle

Requires that a source document (e.g., invoice, receipt) be prepared for every entry in a journal, providing verifiable proof of a transaction.

File Maintenance

The process of arranging accounts in a general ledger, assigning account numbers, and keeping records current.

Opening an Account

Writing an account title and number on the heading of an account in the ledger.... Continue reading "Essential Accounting Concepts and Financial Reporting" »

Core Financial Accounting Concepts and Principles

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Chapter 1: Core Accounting Fundamentals

Key Financial Statements Equations

  • Balance Sheet (BS) Equation: Assets = Liabilities + Stockholders' Equity (SHE)
  • Income Statement (IS) Equation: Revenues - Expenses = Net Income (NI)
  • Retained Earnings (RE) Equation: Beginning RE + Net Income - Dividends = Ending RE

Debit and Credit Rules

  • A Debit increases: Expenses, Assets, Dividends (DEAD)
  • A Credit increases: Liabilities, Revenues, Equity (CLEAR)

Objective of Financial Reporting

  1. Provide information useful to equity investors and creditors.
  2. Maintain the Entity Perspective (separating the company from its owners/people).
  3. Ensure Decision Usefulness.

Adjusting Entries: Deferrals and Accruals

Deferrals (Cash Paid/Received Before Recognition)

Prepaid Expenses

Meaning: Paid... Continue reading "Core Financial Accounting Concepts and Principles" »