Monday, October 24, 2011

Quantitative Analysis - Additional Tools

Definitions of Quantitative Analysis (QA)

Definition of QA in business (investopedia.com)
"A business or financial analysis technique that seeks to understand behavior by using complex mathematical and statistical modeling, measurement and research. By assigning a numerical value to variables, quantitative analysts try to replicate reality mathematically." 

Alternate definition of QA in Chemistry (wikipedia.org)
"In chemistry, quantitative analysis is the determination of the absolute or relative abundance (often expressed as a concentration) of one, several or all particular substance(s) present in a sample."

Alternate definition of QA in Behavior Science (wikipedia.org)
"Quantitative analysis of behavior is the quantitative form of the experimental analysis of behavior. This has become the dominant scientific approach to behavior analysis. It represents behavioral research using quantitative models of behavior."

Methods of QA
Matching Law (QA of Behavior)
"In operant conditioning, the matching law is a quantitative relationship that holds between the relative rates of response and the relative rates of reinforcement in concurrent schedules of reinforcement. It applies reliably when non-human subjects are exposed to concurrent variable interval schedules; its applicability in other situations is less clear, depending on the assumptions made and the details of the experimental situation."

Mathematical Principles of Reinforcement (QA of Behavior)
"Mathematical principles of reinforcement (MPR) are a set of mathematical equations that attempt to describe and predict the most fundamental aspects of behavior. The three key principles of MPR, arousal, constraint, and coupling, describe how incentives motivate responding, how time constrains it, and how reinforcers become associated with specific responses, respectively."

Behavioral Momentum (QA of Behavior)
"Behavioral momentum is a theory in quantitative analysis of behavior and is a comparative metaphor based on physical momentum. It describes the general relation between resistance to change (persistence of behavior) and the rate of reinforcement obtained in a given situation."

Algorithmic Trading (QA in Finance)
"In electronic financial marketsalgorithmic trading or automated trading, also known as algo tradingblack-box trading or robo trading, is the use of computer programs for entering trading orderswith the computer algorithm deciding on aspects of the order such as the timing, price, or quantity of the order, or in many cases initiating the order without human intervention."

Stochastic Calculus (QA in Finance)
"Stochastic calculus is a branch of mathematics that operates on stochastic processes. It allows a consistent theory of integration to be defined for integrals of stochastic processes with respect to stochastic processes. It is used to model systems that behave randomly."

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