March 25, 2026
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Academic-quality transformation tools for ungrouped numeric data in econometrics & statistics
What is Capital Budgeting? Capital Budgeting is the process of evaluating and selecting long-term investment projects that involve significant capital expenditures such as purchasing new machinery, expanding production facilities, or launching new products. It compares costs and benefits of projects to determine its long-term profitability. Some of the most common
What is Cost Benefit Analysis (CBA)? Cost Benefit Analysis (CBA) is a process that’s used to determine the profitability of a project by estimating and comparing its costs and benefits measured in monetary terms after adjusting for the time value of money. Objectives of Cost Benefit Analysis To determine the
In this post we will discuss measures of poverty and inequality. What is Poverty? Poverty can be defined in two ways, absolute poverty and relative poverty. In ordinary language when we ask about poverty, we often mean absolute poverty. But what it is? United Nations define poverty as: A condition
Goodness of Fit So far, we have no way of measuring how well the explanatory or independent variable, X, explains the dependent variable, Y. In other words, we must know how well the OLS regression line fits the data. Are the observations tightly clustered around the regression line, or are
