1557 search results for "regression"

Bootstrapping a Single Statistic (k=1) The following example…

November 1, 2011
By
Bootstrapping a Single Statistic (k=1)

The following example…

Bootstrapping a Single Statistic (k=1) The following example generates the bootstrapped 95% confidence interval for R-squared in the linear regression of miles per gallon (mpg) on car weight (wt) and displacement (disp). The data source is mtcars. The...

Read more »

Using Sparse Matrices in R

October 31, 2011
By
Using Sparse Matrices in R

Introduction I’ve recently been working with a couple of large, extremely sparse data sets in R. This has pushed me to spend some time trying to master the CRAN packages that support sparse matrices. This post describes three of them: the Matrix, slam and glmnet packages. The first two packages provide data storage classes for

Read more »

Testing for…

October 31, 2011
By
Testing for…

Input Output Testing for regression Input: advertising=c(1,2,3,4,5) sales=c(1,1,2,2,4) sales.Reg=lm(sales~advertising) summary(sales.Reg) Output: > advertising=c(1,2,3,4,5) > sales=c(1,1,2,2,4) > > sales.Reg=lm(sales~advertising) > summary...

Read more »

Learning R: Project 1, Part 2

October 30, 2011
By
Learning R: Project 1, Part 2

So it's been a week since I started down this path.  I worked most of this out over last weekend, went to a conference, had hectic week at work, and then realized I lost my work.  Gah.I'll be posting my general thoughts on R later.  Most...

Read more »

Bayesian ideas and data analysis

October 30, 2011
By
Bayesian ideas and data analysis

Here is another Bayesian textbook that appeared recently. I read it in the past few days and, despite my obvious biases and prejudices, I liked it very much! It has a lot in common (at least in spirit) with our Bayesian Core, which may explain why I feel so benevolent towards Bayesian ideas and

Read more »

Modelling with R: part 5

October 30, 2011
By

In our exercise of learning modelling in R, we have till now succeeded in doing the following:Importing the dataPreparing and transforming the dataRunning a logistic regressionCreating a decision treeSpecifically, we created a decision tree using the r...

Read more »

Predictability of stock returns : Using acf()

October 27, 2011
By
Predictability of stock returns : Using acf()

In my previous post, I employed a rather crude and non-parametric approach to see if I could predict the direction of stock returns using the function runs.test(). Lets go a step further and try modelling this with a parametric econometric approach. The company that I choose for the study is INFOSYS (NSE code INFY). Lets start...

Read more »

Pair trading strategy : how to use "PairTrading" package

October 25, 2011
By
Pair trading strategy : how to use "PairTrading" package

Mr.Ishikawa(my old friend) and I developed "PairTrading" package, and uploaded it on CRAN.This article shows you how you can use it.The pair trading is a market neutral trading strategy and gives traders a chance to profit regardless of market conditions. The idea of this strategy is quite simple. 1 : Select two stocks(or any assets) moving similarly 2 : Short...

Read more »

understanding computational Bayesian statistics: a reply from Bill Bolstad

October 23, 2011
By
understanding computational Bayesian statistics: a reply from Bill Bolstad

Bill Bolstad wrote a reply to my review of his book Understanding computational Bayesian statistics last week and here it is, unedited except for the first paragraph where he thanks me for the opportunity to respond, “so readers will see that the book has some good features beyond having a “nice cover”.” (!) I simply processed

Read more »

Principal component analysis : Use extended to Financial economics : Part 2

October 22, 2011
By

My previous post talked about how we can employ PCA on the data for multiple stock returns to reduce the number of variables in explaining the variance of the underlying data. But the idea was greeted with skepticism by many. A caveat to the applicatio...

Read more »