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  2. Glossary of mathematical symbols - Wikipedia

    en.wikipedia.org/wiki/Glossary_of_mathematical...

    2. Denotes the additive inverse and is read as minus, the negative of, or the opposite of; for example, –2. 3. Also used in place of \ for denoting the set-theoretic complement; see \ in § Set theory. × (multiplication sign) 1. In elementary arithmetic, denotes multiplication, and is read as times; for example, 3 × 2. 2.

  3. Random walk model of consumption - Wikipedia

    en.wikipedia.org/wiki/Random_walk_model_of...

    Robert Hall was the first to derive the effects of rational expectations for consumption. His theory states that if Milton Friedman’s permanent income hypothesis is correct, which in short says current income should be viewed as the sum of permanent income and transitory income and that consumption depends primarily on permanent income, and if consumers have rational expectations, then any ...

  4. Expected value - Wikipedia

    en.wikipedia.org/wiki/Expected_value

    Such subtleties can be seen concretely if the distribution of X is given by the Cauchy distribution Cauchy(0, π), so that f(x) = (x 2 + π 2) −1. It is straightforward to compute in this case that ∫ a b x f ( x ) d x = ∫ a b x x 2 + π 2 d x = 1 2 ln ⁡ b 2 + π 2 a 2 + π 2 . {\displaystyle \int _{a}^{b}xf(x)\,dx=\int _{a}^{b}{\frac {x ...

  5. Simple linear regression - Wikipedia

    en.wikipedia.org/wiki/Simple_linear_regression

    Since the data in this context is defined to be (x, y) pairs for every observation, the mean response at a given value of x, say x d, is an estimate of the mean of the y values in the population at the x value of x d, that is ^ ^. The variance of the mean response is given by: [11]

  6. Distribution of the product of two random variables - Wikipedia

    en.wikipedia.org/wiki/Distribution_of_the...

    The area of the selection within the unit square and below the line z = xy, represents the CDF of z. This divides into two parts. The first is for 0 < x < z where the increment of area in the vertical slot is just equal to dx. The second part lies below the xy line, has y-height z/x, and incremental area dx z/x.

  7. Quasilinear utility - Wikipedia

    en.wikipedia.org/wiki/Quasilinear_utility

    In the case of two goods this function could be, for example, (,) = +. The quasilinear form is special in that the demand functions for all but one of the consumption goods depend only on the relation between the good and the numeraire good (x) and not on the income. Example:

  8. Quadratic formula - Wikipedia

    en.wikipedia.org/wiki/Quadratic_formula

    The roots of the quadratic function y = ⁠ 1 / 2x 2 − 3x + ⁠ 5 / 2 ⁠ are the places where the graph intersects the x-axis, the values x = 1 and x = 5. They can be found via the quadratic formula. In elementary algebra, the quadratic formula is a closed-form expression describing the solutions of a quadratic equation.

  9. Lagrange multiplier - Wikipedia

    en.wikipedia.org/wiki/Lagrange_multiplier

    For example, in economics the optimal profit to a player is calculated subject to a constrained space of actions, where a Lagrange multiplier is the change in the optimal value of the objective function (profit) due to the relaxation of a given constraint (e.g. through a change in income); in such a context is the marginal cost of the ...

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