FINANCIAL ANALYSIS

Sampling error is the error that results from selecting a sample that does not accurately represent the population from which it was drawn. Causes of Sampling Error: Selection bias: The way in which samples are selected can lead to biased results, as certain individuals or groups may be more likely to be selected than others. […]

Risk Financing Risk financing is a strategy that involves transferring financial risk from one party to another. It is commonly used in the insurance industry, where insurers pool risk and charge premiums to cover potential losses. Types of Risk Financing: 1. Reinsurance: The process of reinsuring a portion of an insurance policy with another insurer.2. […]

Coefficient of Determination (r²) The coefficient of determination (r²) is a measure of how well a linear model fits a set of data. It is a squared value between 0 and 1, representing the proportion of variance in the dependent variable that is explained by the independent variables. Formula: r² = 1 – [(n – […]