Tree diagram
Chat with our AI personalities
This is a very simple statistic to comprehend and to calculate. It takes the frequency distribution method of calculating probability. The statistic is calculated as This statistic is simple to interpret as well. What it calculates is the probability of the portfolio to get a negative return. It can be comprehended that a higher figure would mean a higher probability of fund to do give negative returns.
pairs
relative frequency method
There are two main methods: the empirical method and the theoretical method. Suppose you want the probability of throwing a 6 on one roll of a die. Empirical method: Throw the die lots and lots of times and count the total number of throws as well as the number of throws that result in a 6. The probability of throwing a six is the number of times you get a 6 divided by the total number of throws. Theoretical method: A die is a cube with six equal faces. Assuming the die is fair, each face has an equal probability of turning up. There are no other outcomes possible (the probability of the die ending up on an edge or a vertex are assumed to be zero). So, there are six outcome, and each equally probable, so that each has a probability of 1/6.
Answer is Quota sampling. Its one of the method of non-probability sampling.