Cronbach's alpha (α) measures internal consistency
Image: Kakidai, CC BY-SA 4.0, via Wikimedia Commons
Cronbach's alpha (α) measures internal consistency
Cronbach's alpha (α) is a reliability coefficient used to assess the internal consistency of tests and measures. It quantifies how closely related a set of items are as a group.
Example
In a survey measuring job satisfaction, Cronbach's alpha might be used to evaluate the consistency of responses across different questions related to job satisfaction.
Understanding Cronbach's alpha helps ensure the reliability of psychological and educational assessments.
Greeks (finance)
Greeks measure sensitivity of option prices to underlying parameters
Information ratio
Information ratio = Active return / Tracking error
Beta (finance)
Beta measures a stock's volatility relative to the market
Treynor ratio
Treynor ratio measures excess return per unit of systematic risk
Fama–French three-factor model
Fama-French model adds size and value factors to CAPM
Overconfidence effect
Overconfidence leads to overtrading and underperformance
Educational content, not financial advice.
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