Useful tips for everyday
Is the logarithmic score strictly proper? The logarithmic scoring rule is a local strictly proper scoring rule. This is also the negative of surprisal, which…
Why is Q-learning an off-policy method while SARSA an on policy method? Q-learning is called off-policy because the updated policy is different from the behavior…
What if p-value is too small? If your p-value is less than your selected alpha level (typically 0.05), you reject the null hypothesis in favor…
Is R-squared the standard deviation of residuals? The residual standard error is the standard deviation of the residuals – Smaller residual standard error means predictions…
How do you forecast residuals? A good forecasting method will yield residuals with the following properties: The residuals are uncorrelated. If there are correlations between…
What is the difference between percentage change and log? (Return to top of page.) First difference of LOG = percentage change: When used in conjunction…
What are industry fixed effects? Country fixed effects should capture systematic differences in the financial environment across countries (such as bankruptcy laws) while industry fixed…
How to fit a cubic spline in R? The idea here is to transform the variables and add a linear combination of the variables using…
Why is OLS estimator normally distributed? The reason this estimator is normally distributed is that it is a linear function of the underlying error vector…
Is linear discriminant analysis a classifier? Linear discriminant analysis is not just a dimension reduction tool, but also a robust classification method. With or without…