Heteroscedasticity describes a situation where risk (variance) changes with the level of a variable. In financial models, this means volatility is not constant. Most pricing and forecasting models ...

Discover how sample size neglect impacts statistical conclusions and learn to avoid this cognitive bias studied by renowned experts like Tversky and Kahneman.

Most players know how to place a bet in roulette. Fewer know how each bet behaves over time. Behind every spin, there is a ...