Understanding R-Squared and Multiple R in CFA: A Quick Guide
Understanding R-Squared and Multiple R in CFA: A Quick Guide One of the most important topics in the CFA readings is the basic calculation of linear regression. In the exam,…
The Capitalized Cash Flow Method & Real Estate Market: Understanding Cash Flow Valuation
The Capitalized Cash Flow Method & Real Estate Market: Understanding Cash Flow Valuation Hi, it's William Jiamin from Learn-Finance-Free. Last time we talked about the cap rate, especially about the…
The Steps of Carry Arbitrage in Derivatives
The Steps of Carry Arbitrage in Derivatives All right, so previously we talked about the money and cash flow perspective of carry arbitrage, but what about the order of this…
Carry Arbitrage in Derivatives
Carry Arbitrage in Derivatives Hi, it's William. Welcome to Learn Finance Free. So, let's talk about carry arbitrage. Carry arbitrage is a technique used in derivative trading. Basically, it's an…
Understanding Dummy Variables in Regression Analysis
Dummy variables in statistics represent binary (on/off) conditions and are used to measure the impact of categorical factors on a dependent variable. For instance, they can test if stock returns…
How to do the interpreting the Multiple Regression Results ?
For the intercept term, a multiple regression's estimated regression coefficients are interpreted similarly to a basic linear regression, but differently for the slope coefficients: When all of the independent variables…
What is the usage of p-value in statistics ?
The p-value is used to assess whether the slope coefficient is equal to zero, which is the null hypothesis. The null hypothesis can be rejected at this level of significance,…
What is QQ plot and how to interpret it ?
A QQ (Quantile-Quantile) plot is a visual tool for determining if a collection of data fits a specific theoretical distribution. Although it can be used to evaluate various types of…
What is residual?
The difference between the actual value, Yi, and the predicted value resulting from the regression is the residual.
What is the application of the multiple linear regression model?
The ability to take into account several underlying influences (independent variables) on the dependent variable makes multiple linear regression a significant tool for understanding investment issues. It can be applied…