Examples of parameter in the following topics:
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- In order to conduct a sensitivity analysis, all of the inputs and parameters are connected via an algorithm to produce the output.
- For example, a model of the inputs and parameters for a company interest in creating a new product may include information about expected availability of raw material, inflation rates, and number of employees working in R&D.
- Sensitivity analysis determines how much an output is expected to change due to changes in a variable or parameter.
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- The required parameters to the solution are the total demand for the year, the purchase cost for each item, the fixed cost to place the order, and the storage cost for each item per year.
- Note that the number of times an order is placed will also affect the total cost, though this number can be determined from the other parameters.
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- Measurement of cash flow can be used for calculating other parameters that give information on a company's value and situation.
- Cash flow factors can be used for calculating parameters, such as:
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- In some cases, a lease may be the only practical option; for example, a small business may wish to open a location in a large office building within tight location parameters.
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- Inventory control - inventory cost elements (holding cost, order cost, total)Parameters: Order-cost (C) 10, demand (D) 1000, holding cost (i) 20% (of price), price (p) 10 => EOQ = 100
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- Less commonly, the focus is on a quantile, or other location parameter of the conditional distribution of the dependent variable given the independent variables.
- Familiar methods, such as linear regression and ordinary least squares regression, are parametric, in that the regression function is defined in terms of a finite number of unknown parameters that are estimated from the data.
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- The Forex Beta measures the economic exposure and is a parameter estimate of a linear regression equation.
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- We assume the random error term, ($\varepsilon$) equals zero with a constant variance while ($\alpha$) and ($\beta$) are the estimated parameters.
- Consequently, this equation estimates a straight line between P and S with an intercept of ($\alpha$) and a slope of ($\beta$).We refer the parameter ($\beta$) as the Forex Beta or Exposure Coefficient, and it indicates the exposure level.
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- A full fruit basket probably has 10 or 15 different fruits, but my bowl will be efficient as much as its statistical parameters (risk and return) mimic those of the whole basket.
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- At the same time, the model generates hedge parameters necessary for effective risk management of option holdings.