article thumbnail

The trinity of errors in applying confidence intervals: An exploration using Statsmodels

O'Reilly on Data

As the number of experimental trials N approaches infinity, the probability of E equals M/N. The CAPM is the pivotal economic equilibrium model of modern finance that predicts expected returns of an asset based on its ?? Jaynes, Cambridge University Press, 2003. Image Source: Deepak Kanungo. References.