Statistics — Page 4
Explore statistical methods, their assumptions, interpretation and limitations.
Research field
Method family
NBD-Dirichlet Model
The NBD-Dirichlet model is the canonical stochastic model of repeat buying and brand choice in stationary, competitive consumer-goods markets. Introduced by Gerald Goodhardt, Andrew Ehrenberg and Christopher Chatfield in their 1984 Journal...
Nested Logit Brand Choice
The nested logit model of brand choice relaxes the restrictive independence-of-irrelevant-alternatives (IIA) assumption of the standard multinomial logit by grouping similar alternatives into nests. Developed by Daniel McFadden as a member...
Oaxaca-Blinder Decomposition
The Oaxaca-Blinder decomposition is a regression-based technique that splits the difference in a mean outcome between two groups — classically the average wage gap between men and women or between racial groups — into a part explained by di...
Organizational Identification Scale
The Organizational Identification Scale is Mael and Ashforth's widely used measure of the extent to which people define themselves in terms of their organizational membership. It rests on the social-identity reformulation of identification...
Overlapping Generations Model
The Overlapping Generations Model, pioneered by Paul Samuelson in 1958 and extended by Peter Diamond in 1965, is a macroeconomic framework where successive generations of individuals live for finite periods and coexist at any point in time....
PIMS Profit Impact of Market Strategy Analysis
PIMS (Profit Impact of Market Strategy) analysis searches a large, multi-industry database of business units for the general empirical relationships that link strategy and market conditions to profitability. Originating in General Electric'...
Pairs Trading
Pairs trading is a quantitative trading strategy that takes a long-short position on two cointegrated assets when the gap (spread) between their prices shows mean reversion. It was popularised as a relative-value arbitrage rule by Gatev, Go...
Pareto/NBD Model
The Pareto/NBD model is the foundational buy-till-you-die model of customer-base analysis, answering the question of which customers are still active and how many transactions they will make in the future from a non-contractual purchase his...
Person-Organization Fit
Person-organization (P-O) fit is the organizational-behavior construct describing the compatibility between an individual and the organization they work for, most often operationalized as the congruence between personal and organizational v...
Polynomial Regression with Response Surface Analysis
Polynomial regression with response surface analysis is the methodological gold standard for testing congruence, fit, and agreement hypotheses in organizational behavior, introduced by Jeffrey Edwards and Mark Parry in 1993. It replaces the...
Price Elasticity from Scanner Data
Estimating price elasticity from scanner data means fitting a store-level sales-response model to the weekly unit-sales, price, and promotion records that retail checkout scanners generate, in order to recover how sensitive demand is to pri...
Principal Component Risk Factors
Risk Factor PCA is a dimension-reduction method that decomposes the return covariance matrix of many assets into a small set of orthogonal principal components interpreted as systematic risk factors. Litterman and Scheinkman (1991) used it...
Psychological Capital Scale
Psychological capital (PsyCap) is a higher-order positive psychological resource in the positive-organizational-behavior tradition, composed of four state-like capacities: hope, efficacy (self-confidence), resilience, and optimism — togethe...
Psychological Contract Measurement
The psychological contract is an employee's set of beliefs about the reciprocal obligations between themselves and their employer — the unwritten promises that go beyond the formal employment agreement. Denise Rousseau revived and reframed...
Psychological Empowerment Scale
The Psychological Empowerment Scale is Gretchen Spreitzer's measure of empowerment as an internal motivational state, defined by four cognitions: meaning, competence, self-determination, and impact. It operationalizes the interpretive model...
Ramsey-Cass-Koopmans Model
The Ramsey-Cass-Koopmans model, developed initially by Frank Ramsey in 1928 and formalized by David Cass and Tjalling Koopmans in 1965, is the workhorse model of macroeconomic growth theory. It describes how rational consumers optimize cons...
Real Business Cycle Model
The Real Business Cycle (RBC) model, developed by Finn Kydland and Edward Prescott in 1982, is a dynamic stochastic general equilibrium framework that explains macroeconomic fluctuations as rational responses to exogenous technological shoc...
Realized Volatility
Realized volatility estimates an asset's variance directly from high-frequency intraday returns rather than from a parametric latent process. The Heterogeneous Autoregressive (HAR) model of Corsi (2009), building on the realized-volatility...
Recreation Demand Travel Cost Model
The recreation demand travel cost model values a recreation site — a national park, beach, lake, or heritage attraction — by exploiting the fact that visitors reveal how much the experience is worth to them through the cost they incur to ge...
Reference Price Modeling
Reference price models capture the behavioral reality that consumers judge a price not in absolute terms but relative to an internal benchmark — a reference price they have formed from past prices. When the observed price falls below the re...
Regime-Switching Model
The Markov regime-switching model, introduced by James D. Hamilton in 1989, is a hidden-state time-series model in which financial series such as returns or volatility behave with different parameters across distinct economic regimes (bull/...
RevPAR Performance Analysis
RevPAR performance analysis is the practice of measuring, decomposing, and benchmarking hotel performance using revenue per available room and its companion metrics. RevPAR distills a hotel's success into a single figure, rooms revenue divi...
Risk Parity Portfolio
Risk parity is a portfolio weighting model, formalised by Maillard, Roncalli and Teïletche (2010), in which every asset contributes an equal share of the total portfolio risk. It needs only the covariance (risk) structure of the assets and...
Risk-Neutral Valuation
Risk-neutral valuation (1979) is the fundamental principle that derivative prices equal the expected payoff discounted at the risk-free rate, computed under a risk-neutral probability measure (Q-measure). This principle, formalized by Harri...