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The duration of a stock is the average of ... i.e. those conditions aren't expected to obtain for possibly decades. ... The modified duration formula assumes a linear ...
The dual use of the word "duration", as both the weighted average time until repayment and as the percentage change in price, often causes confusion. Strictly speaking, Macaulay duration is the name given to the weighted average time until cash flows are received and is measured in years. Modified duration is the name given to the price ...
Bond duration Bond duration is the weighted-average time to receive the discounted present values of all the cash flows (including both principal and interest), while WAL is the weighted-average time to receive simply the principal payments (not including interest, and not discounting). For an amortizing loan with equal payments, the WAL will ...
The mean (expected value) is then: E = ( a + m + b ) / 3. In some applications, [ 1 ] the triangular distribution is used directly as an estimated probability distribution , rather than for the derivation of estimated statistics.
Survival analysis is a branch of statistics for analyzing the expected duration of time until one event occurs, such as death in biological organisms and failure in mechanical systems. This topic is called reliability theory , reliability analysis or reliability engineering in engineering , duration analysis or duration modelling in economics ...
The expected profit from such a bet will be [$] = $ + $ = $. That is, the expected value to be won from a $1 bet is −$ 1 / 19 . Thus, in 190 bets, the net loss will probably be about $10.
Indeed, the expected value [] is not defined for any positive value of the argument , since the defining integral diverges. The characteristic function E [ e i t X ] {\displaystyle \operatorname {E} [e^{itX}]} is defined for real values of t , but is not defined for any complex value of t that has a negative imaginary part, and hence ...
Under the assumptions of the model, CLV is a multiple of the margin. The multiplicative factor represents the present value of the expected length (number of periods) of the customer relationship. When retention equals 0, the customer will never be retained, and the multiplicative factor is zero.