The Fundamental Law of Active Management decomposes a well known summarizing metric of an investment strategy. The decomposition yields two dimensions along which all strategies may be judged and suggests avenues for improvement.
The exponential family is a generalization of distributions, inclusive of many familiar ones plus a universe of others. The general form brings elegant properties, illuminating all distributions within. In this post, we discuss what it is, how it applies and some of its properties.
We reveal the gini impurity metric as the destination of a few natural steps.
For a class of models, the trace provides a measure of model complexity that's useful for managing the bias variance trade-off.
Utilizing a geometric perspective, we find an efficient algorithm for solving a special kind of system of equations.
A clever and useful technique for inferring distributions over infinite functions using finite observations.
Any linear transformation fixes four subspaces, which delineate outputs that can be reached using inputs that matter.