--%>

Explain statistical modelling way of determine the model

Explain statistical modelling way of determine the model.

E

Expert

Verified

A large part of statistical modelling concerns determining model parameters. One popular manner of doing it is Maximum Likelihood Estimation.

The method is simply explained by a very simple illustration. You are involved in a maths conference. You arrive through train at the city hosting the event.

   Related Questions in Financial Management

  • Q : Basic motivations for counterparty to

    Discuss the fundamental motivations for a counterparty to enter in a currency swap. One fundamental reason for a counterparty to enter in a currency swap is to exploit the comparative benefit of the other in gaining debt financing at a lower int

  • Q : Explain in brief about financial ratio

    Explain in brief about financial ratio?

  • Q : Explain simple and complicated formula

    Explain the difference between simple and complicated formula of value at risk.

  • Q : Question on floating-rate Your firm

    Your firm have just issued five year floating-rate notes indexed to six-month U.S. dollar LIBOR plus 1/4%.  Describe the amount of first coupon payment your firm will pay per U.S. $1,000 of face value, if six-month LIBOR is at present 7.2%?Solution: 

  • Q : Explain how changes occur in Crash

    Explain how changes occur in Crash Metrics during a crash?

  • Q : Illustrates example of mathematics in

    Give an example of different types of mathematics found in Quantitative Finance?

  • Q : Kareem construction Show how Kareem's

    Show how Kareem's WACC would change if the tax rate dropped to 25 percent and the estimated cost of equity capital were based on a risk-free rate of 7 percent, a market risk premium of 8 percent, and a systematic risk measure or beta of 2.0.

  • Q : How can stocks are squeezed in the

    How can stocks are squeezed in the Black–Scholes framework when it falls dramatically?

  • Q : How can FX futures market be utilized

    How can the FX futures market be utilized for price discovery?To extent that FX forward prices are an unbiased predictor of future spot exchange rates, the market anticipates whether one currency will appreciate or depreciate versus another. Si

  • Q : Distribution of quants’ salaries

    Explain distribution of quants’ salaries with a survey on a company.