MEAN: In statistics, the mean is the mathematical average of a set of numbers.

The average is calculated by adding up two or more scores and dividing the total by the number of scores. Consider the following number set: 2, 4, 6, 9, 12. The average is calculated in the following manner: 2 + 4 + 6 + 9 + 12 = 33 / 5 = 6.6. So the average of the number set is 6.6. STAND DEVIATION: 1. A measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is calculated as the square root of variance. Standard deviation is a statistical measurement that sheds light on historical volatility. For example, a volatile stock will have a high standard deviation while the deviation of a stable blue chip stock will be lower. A large dispersion tells us how much the return on the fund is deviating from the expected normal returns. RELATIVE FREQUENCY:
The relative frequency is the observed number of successful events for a finite sample of trials. Relative frequency is the observed proportion of successful events.

EXAMPLE:
Suppose we toss a coin 50 times and have 27 heads and 23 tails. We define a head as a success. The relative frequency of heads is: n/N = 27/50 = 54% The probability of a head is 50%. The difference between the relative frequency of 54% and the probability of 50% is due to small sample size.

Relative Frequency of a Class =

CUMULATIVE RELATIVE FREQUENCY: Cumulative frequency analysis is the analysis of the frequency of occurrence of values of a phenomenon less than a reference value. The phenomenon may be time or space

dependent.Cumulative frequency analysis is done to obtain insight into how often a certain phenomenon (feature) is below a certain value. This may help in describing or explaining a situation in which the phenomenon is involved, or in planning interventions, for example in flood protection. REGRESSION: A statistical measure that attempts to determine the strength of the relationship between one dependent variable (usually denoted by Y) and a series of other changing variables (known as independent variables). The two basic types of regression are linear regression and multiple regression. Linear regression uses one independent variable to explain and/or predict the outcome of Y, while multiple regression uses two or more independent variables to predict the outcome. The general form of each type of regression is: Linear Regression: Y = a + bX + u Multiple Regression: Y = a + b1X1 + b2X2 + B3X3 + ... + BtXt + u Y= the variable that we are trying to predict Home > Dictionary

Regression
What Does Regression Mean? A statistical measure that attempts to determine the strength of the relationship between one dependent variable (usually denoted by Y) and a series of other changing variables (known as independent variables). Investopedia explains Regression The two basic types of regression are linear regression and multiple regression. Linear regression uses one independent variable to explain and/or predict the outcome of Y, while multiple regression uses two or more independent variables to predict the outcome. The general form of each type of regression is: Linear Regression: Y = a + bX + u Multiple Regression: Y = a + b1X1 + b2X2 + B3X3 + ... + BtXt + u Where: Y= the variable that we are trying to predict X= the variable that we are using to predict Y a= the intercept b= the u= the regression

slope residual.

In multiple regression the separate variables are differentiated by using subscripted numbers. Regression takes a group of random variables, thought to be predicting Y, and tries to find a mathematical relationship between them. This relationship is typically in the form of a straight line (linear regression) that best approximates all the individual data points. Regression is often used to determine how much specific factors such as the price of a commodity, interest rates, particular industries or sectors influence the price movement of an asset. CORELATION: Correlation is a statistical measurement of the relationship between two variables. Possible correlations range from +1 to 1. A zero correlation indicates that there is no relationship between the variables. A correlation of 1 indicates a perfect negative correlation, meaning that as one variable goes up, the other goes down. A correlation of +1 indicates a perfect positive correlation, meaning that both variables move in the same direction together. Purpose (What is Correlation?) Correlation is a measure of the relation between two or more variables. The measurement scales used should be at least interval scales, but other correlation coefficients are available to handle other types of data. Correlation coefficients can range from -1.00 to +1.00. The value of -1.00 represents a perfect negative correlation while a value of +1.00 represents a perfect positive correlation. A value of 0.00 represents a lack of correlation. The most widely-used type of correlation coefficient is Pearson r, also called linear or product- moment correlation. Simple Linear Correlation (Pearson r). Pearson correlation (hereafter called correlation), assumes that the two variables are measured on at least interval scales (see Elementary Concepts), and it determines the extent to which values of the two variables are "proportional" to each other. The value of correlation (i.e., correlation coefficient) does not depend on the specific measurement units used; for example, the correlation between height and weight will be identical regardless of whether inches and pounds, or centimeters and kilograms are used as measurement units. Proportional means linearly related; that is, the correlation is high if it can be "summarized" by a straight line (sloped upwards or downwards). COEFFICIENT OF VARIANS: A statistical measure of the dispersion of data points in a data series around the mean. It is calculated as follows:

The coefficient of variation represents the ratio of the standard deviation to the mean, and it is a useful statistic for comparing the degree of variation from one data series to another, even if the means are drastically different from each other. In the investing world, the coefficient of variation allows you to determine how much volatility (risk) you are assuming in comparison to the amount of return you can expect from your investment. In simple language, the lower the ratio of standard deviation to mean return, the better your risk-return tradeoff.

CONFIDENCE LEVEL OR INTERVAL:

In statistics, a confidence interval (CI) is a particular kind of interval estimate of a population parameter and is used to indicate the reliability of an estimate. It is an observed interval (i.e. it is calculated from the observations), in principle different from sample to sample, that frequently includes the parameter of interest, if the experiment is repeated. How frequently the observed interval contains the parameter is determined by the confidence level or confidence coefficient. A confidence interval with a particular confidence level is intended to give the assurance that, if the statistical model is correct, then taken over all the data that might have been obtained, the procedure for constructing the interval would deliver a confidence interval that included the true value of the parameter the proportion of the time set by the confidence level.[clarification needed] More specifically, the meaning of the term "confidence level" is that, if confidence intervals are constructed across many separate data analyses of repeated (and possibly different) experiments, the proportion of such intervals that contain the true value of the parameter will approximately match the confidence level; this is guaranteed by the reasoning underlying the construction of confidence intervals. The confidence level is the probability value interval. associated with a confidence

It is often expressed as a percentage. For example, say , then the confidence level is equal to (1-0.05) = 0.95, i.e. a 95% confidence level. Suppose an opinion poll predicted that, if the election were held today, the Conservative party would win 60% of the vote. The pollster might attach a 95% confidence level to the interval 60% plus or minus 3%. That is, he thinks it very likely that the Conservative party would get between 57% and 63% of the total vote.