Consider the following table which presents a simplified example of stock prices observed at five different time points for Pfizer (pharmaceutical company) and Moderna (a biotechnology company). If the stocks are affected by the same industry trends, will their prices rise or fall together? Calculate the sample covariance to answer this question. Timepoint Pfizer Moderna t1 36 128 t2 34 97 t3 33 78 t4 32 64 t5 30 32
Minimization
In mathematics, traditional optimization problems are typically expressed in terms of minimization. When we talk about minimizing or maximizing a function, we refer to the maximum and minimum possible values of that function. This can be expressed in terms of global or local range. The definition of minimization in the thesaurus is the process of reducing something to a small amount, value, or position. Minimization (noun) is an instance of belittling or disparagement.
Maxima and Minima
The extreme points of a function are the maximum and the minimum points of the function. A maximum is attained when the function takes the maximum value and a minimum is attained when the function takes the minimum value.
Derivatives
A derivative means a change. Geometrically it can be represented as a line with some steepness. Imagine climbing a mountain which is very steep and 500 meters high. Is it easier to climb? Definitely not! Suppose walking on the road for 500 meters. Which one would be easier? Walking on the road would be much easier than climbing a mountain.
Concavity
In calculus, concavity is a descriptor of mathematics that tells about the shape of the graph. It is the parameter that helps to estimate the maximum and minimum value of any of the functions and the concave nature using the graphical method. We use the first derivative test and second derivative test to understand the concave behavior of the function.
18
Data Mining
Consider the following table which presents a simplified example of stock prices observed at five different time points for Pfizer (pharmaceutical company) and Moderna (a biotechnology company). If the stocks are affected by the same industry trends, will their prices rise or fall together? Calculate the sample
|
Timepoint |
Pfizer |
Moderna |
|
t1 |
36 |
128 |
|
t2 |
34 |
97 |
|
t3 |
33 |
78 |
|
t4 |
32 |
64 |
|
t5 |
30 |
32 |
Step by step
Solved in 2 steps
