Python and Statistics for Financial Analysis, week-3

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Week-3

1. Sample is a subset of population which is randomly drawn from the population.

2.data['population'].sample(5, replace=True)

3. The degrees of freedom in sample variance is constrained by the sample mean

4. The distribution of sample mean follows normal distribution with very large sample size follows            normal distribution regardless of the population distribution

5.Mean and variance of X1, X2 and X3 are added up

6.The standardized distribution of sample mean follows N(0,1) which is easier to make inference

7. With 95% chance this interval will cover the mean of daily return 

8. [-0.000015603, 0.001656]

9.z < z_(1-α)

  z < z_(1-α)

10. There is 95% chance of which the mean return of this stock is negative