Student's t distribution

The small sample is a 10-day series of Google's daily periodic returns. The question is, with 95% confidence, what is the true (population) average return? This is the essence of statistics, based on sample statistics (sample mean, sample variance) we are trying to infer population parameters (population mean).

Category:

Education

Tags:

• Finance
• Quant
• Excel

[rfvo]

to continue...can one not assume that since the distribution is less/more peak than a normal distribution that the tail will be fatter/thinner, but that it rather depends on the type of distribution?

[bionicturtledotcom]

Thanks for your kind feedback. I agree with you: i think peakedness is not the key feature. IMO, leptokurtosis refers to HEAVY TAIL. And the feature has not to do with the peak, but rather that extreme outcomes are more likely than normal; e.g., =TINV(1%*2, d.f.) < NORMSINV(1%). The student's t is lepto b/c 1% outcomes are further away (conversely, same distance from mean has higher probability). Thanks for good thought! David

[muellman78]

Thank you sir...(from a Ph.D. holder)

[bigbabbys]

lifesaving as always!!



[Lisnageeragh]

Was the Students t distribution developed by a fellow who worked in Guinnesses?

[baronbaris07]

Great video but t alpha is not clear.

[tsugaconcolor]

Helped a lot - thanks.

[imdpower108]

bionicturtle.. my english isin't good enough to explain how much this video means to me..

[AllMightyBoB88]

This video helped me greatly! Thank you so much for doing this!

[benniboi231]

This video is pure gold...thank you so much!

[ranagan9]

@Fishman0671 you use the t distribution table and you can find your confidence limit that way