Learn about investing, trading, retirement, banking, personal finance and more.
In statistics, the number of times that a specific value shows up in a data set is the absolute frequency of that value.
The absolute frequency can then be used to find the relative frequency, which is the probability that the specific value is observed in a given number of trials. The relative frequency (empirical probability) takes the absolute frequency and divides it by the total number of trials (cumulative frequency), and can be expressed as a ratio or percentage.
The absolute frequency is just one number: the number of observations of a specific value or defined set of values. If it is not a specific value, but instead a range of values that is being observed, this range is called a frequency bin, and the absolute frequency will be the number of occurrences of any value within that bin.
Another way of defining the values being observed is by class: different values can be grouped within a class, and the absolute frequency of the class can be counted. An educated investor should have a working knowledge of statistical terms and methods.
Let’s look at some of the classifications for mutual funds that are determined using criteria other than market cap...
Options can be a valuable tool in portfolio management, but investors should be well-versed in how options work
Yes, if you sell the bond before its maturity, it’s possible that you would have to sell it at a discount. If you...
Yes, you can pay more than nominal value for a bond. And this is part of what’s called the interest rate risk of bonds
A bond coupon is the interest rate that a bond issuer agrees to pay to the bondholder
The Federal Open Market Committee (FOMC) is the monetary policy-making body of the Federal Reserve System
The truest definition of a Bank Draft is a check written with the certification of a customer’s bank
Chapter 11 is a type of bankruptcy filing a company can make to give itself time to reorganize and hopefully continue
Publication 535 is a useful guide which enumerates most of the possible business expenses that can be deducted
The Rectangle Top pattern forms when a stock price is stuck in a range bound motion, between support/resistance levels