The Coefficient Of Determination or R2

The coefficient of determination R^{2} shows how much of the variation of the dependent variable y (Var(y)) can be explained by our model. Another way of interpreting the coefficient of determination R^{2}, which will not be discussed in this post, is to look at it as the squared Pearson correlation coefficient between the observed values y_{i} and the fitted values \hat{y}_{i}. Why this is the case exactly can be found in another post.

Continue reading The Coefficient Of Determination or R2

Advertisements

Balance Statistic

The following article tries to explain the Balance Statistic sometimes referred to as Saldo or Saldo Statistic. It is used as a quantification method for qualitative survey question. The benefit of applying the Balance Statistic arises when the survey is repeated over time as it tracks changes in respondents answers in a comprehensible way. The Balance Statistic is common in Business Tendency Surveys.

Continue reading Balance Statistic

The Reach of the Continetal Blockade – The Case of Toulouse

smugglers unloading contraband

Introduction:

Finding a definition of globalization feels like finding a description for a phenomenon that can only be defined by itself. A definition for globalization is like a fraction that tries to approach π. In the same way the approximation gets closer and closer to the true value of π, but never reaches it Continue reading The Reach of the Continetal Blockade – The Case of Toulouse

Stochastic Independence versus Stochastic Dependence

Stochastic Independence versus Stochastic Dependence

In order to fully understand the Bayesian rule it is important to be familiar with some concepts of standard probability theory. Assume we have two events, let’s call them A and B. The probability that event A occurs is P(A) and the probability that event B occurs is P(B). If event A and event B are independent from each other, the probability that both events are occurring at the same time, also known as the joint probability P(A\cap B).

Continue reading Stochastic Independence versus Stochastic Dependence

Advertisements

“In God we trust; all others must bring data.” W. Edwards Deming

Advertisements