Random Sampling
A sampling scheme whereby each observation is drawn from the population. In particular, no unit is more likely to be selected than any other unit, and each draw is independent of all other draws. |
Similar financial terms
Randomized strategyA strategy of introducing into the decision-making process a random element that is designed to reduce the information content of the decision-maker's observed choices.
Random walk
Theory that stock price changes from day to day are at random; the changes are independent of each other and have the same probability distribution. Many believers of the random walk theory believe that it is impossible to outperform the market consistently without taking additional risk.
Random variable
A function that assigns a real number to each and every possible outcome of a random experiment.
Normal random variable
A random variable that has a normal probability distribution.
Continuous random variable
A random value that can take any fractional value within specified ranges, as contrasted with a discrete variable.
Stratified sampling bond indexing
A method of bond indexing that divides the index into cells, each cell representing a different characteristic, and that buys bonds to match those characteristics.
Stratified sampling approach to indexing
An approach in which the index is divided into cells, each representing a different characteristic of the index, such as duration or maturity.
