Podcast
Questions and Answers
What is the Gaussian distribution characterized by?
What is the Gaussian distribution characterized by?
- A straight line, asymmetrical around its mean, and characterized by its mean and standard deviation
- A U-shaped curve, symmetrical around its median, and characterized by its mode and range
- A bell-shaped curve, symmetrical around its mean, and characterized by its mean and standard deviation (correct)
- A triangular shape, asymmetrical around its mean, and characterized by its mode and median
What does the Central Limit Theorem state?
What does the Central Limit Theorem state?
- The sum of a small number of dependent and non-identically distributed random variables will tend to be normally distributed
- The sum of a large number of dependent and non-identically distributed random variables will tend to be normally distributed
- The sum of a large number of independent and identically distributed random variables will tend to be uniformly distributed
- The sum of a large number of independent and identically distributed random variables will tend to be normally distributed (correct)
Why is the Gaussian distribution important?
Why is the Gaussian distribution important?
- It is the only distribution applicable to real-world data
- It only applies to a few specific scenarios
- It is the simplest form of distribution to understand
- It describes the distribution of many naturally occurring phenomena (correct)
What phenomena can be described by a Gaussian distribution?
What phenomena can be described by a Gaussian distribution?
What does the graphical depiction of the Central Limit Theorem show?
What does the graphical depiction of the Central Limit Theorem show?
What is the main implication of an asset deviating from the mean price in a normal distribution?
What is the main implication of an asset deviating from the mean price in a normal distribution?
Why do most traders limit their transactions to shorter intervals of time when modeling price movements as a normal distribution?
Why do most traders limit their transactions to shorter intervals of time when modeling price movements as a normal distribution?
What is the kurtosis of price distributions with fat tails?
What is the kurtosis of price distributions with fat tails?
Why may past performance of an asset not reliably foretell future results, even if it has followed a normal distribution over a lengthy period of time?
Why may past performance of an asset not reliably foretell future results, even if it has followed a normal distribution over a lengthy period of time?
What do traders look at to suggest potential trades when modeling price movements as a normal distribution?
What do traders look at to suggest potential trades when modeling price movements as a normal distribution?
What are prediction errors in machine learning usually known as?
What are prediction errors in machine learning usually known as?
What is the main aim of ML/data science analysts in relation to prediction errors?
What is the main aim of ML/data science analysts in relation to prediction errors?
What concept describes the trade-off between bias and variance in machine learning?
What concept describes the trade-off between bias and variance in machine learning?
What is the term for the situation where a machine learning model is not complex enough to capture the underlying patterns in the data?
What is the term for the situation where a machine learning model is not complex enough to capture the underlying patterns in the data?
