amortization period: the length of time required to pay off a mortgage
amortize: make payments to pay off a mortgage
amplitude: half the difference between the maximum and minimum values of a periodic function
arithmetic sequence: a sequence in which each successive term is found by adding a constant to the preceding term
binomial distribution: the probability distribution for a binomial experiment
binomial experiment: an experiment with a fixed number of trials where each trial has the same probability of success (or failure)
bounded: the value of an expression is bounded if there is one pair of integers with the first always less than the expression and the second always larger than the expression
capital gain: a gain in the value of property or equities
capital loss: a loss in the value of property or equities
closed form: an expression with all terms showing
column matrix: a matrix with only a single column
common difference: the difference between two consecutive terms of an arithmetic progression
common ratio: the ratio of each term of a geometric progression to the term preceding it
complement of an event: all the outcomes in a sample space that do not belong to the original event
compound interest: interest added to principal at the end of each interest period
confidence interval: the interval within which the value of a random variable is estimated to lie with a stated degree of probability
cycle: one period
cyclic: repeating at regular intervals
dependent events: two or more events for which the occurrence of one affects the probability of the occurrence of the others
dimensions of a matrix: the number of rows, m , by the number of columns, n , in a matrix, generally written as m n ´
effective rate of interest: the annual rate of interest that produces the same interest as a nominal rate compounded more frequently than once a year
element: an entry in a matrix
equities: stocks or mutual funds
equity: a share in the assets of a company
equivalent rates of interest: two interest rates with different compounding periods that yield the same interest
event: an outcome or a set of outcomes of an experiment
experimental probability: probability determined by observing the relative frequency of a given event
finite: bounded
fractal: an object that appears to be made up of smaller copies of the original
Fundamental Counting Principle: a technique for determining the number of ways two or more tasks can be performed by multiplying the number of ways each separate task can be performed
geometric sequence: a sequence in which the ratio of a term to its predecessor is the same throughout the sequence
independent events: two or more events for which the occurrence of one does not affect the occurrence of the others
infinite: not bounded
initial probability matrix: a matrix consisting of the distribution of probabilities for the first stage of a multistep problem
iteration: a repetition of a sequence of operations that yields results successively closer to a desired result
iteration: a repetition of a sequence of operations that yields results successively closer to a desired result
margin of error: the proportion added to and subtracted from the result to construct the confidence interval
matrix: a rectangular array of elements
maximum value: the largest value of a function or set of data
mean: the average of the items in a data set
median value: the average of the maximum and minimum values of a periodic function
median: the middle value in a data set
minimum value: the smallest value of a function or set of data
mode: the value(s) in a data set that appears most often
mortgage rate: interest rate on a mortgage
mortgage: a loan on property where the property is held as collateral
mutually exclusive events: events that cannot occur at the same time
network problem: a problem involving possible routes between destinations
nominal rate of interest: the stated rate of interest of a loan or deposit
normal curve: a bell-shaped, symmetrical curve representing the probability distribution for a random variable It is also known as the Gaussian curve.
normal distribution: a frequency distribution that can be represented by the normal curve
opposite vectors: vectors that have the same magnitude but in opposite directions
outcome: the result of an experiment
parallelogram method of adding vectors: a method of finding the sum of two vectors arranged tail-to-tail by completing a parallelogram
period: the smallest interval over which a periodic function repeats its values
periodic data: data that repeats its values over a particular interval
periodic event: an event that repeats its values over a particular interval
periodic: repeating at regular intervals
portfolio: investment holdings
probability: the ratio of the number of favourable outcomes to the total number of possible outcomes
radian measure: a system for measuring angles using the ratio of the arc length to the radius
range: the difference between the largest and smallest values of a variable in the sample under consideration
recursive: a procedure that can repeat itself indefinitely
recursively generated sequence: a sequence generated by a recursive process
residual value: the option-to-purchase price of a vehicle at the end of its lease
resultant: a vector that represents the same direction and magnitude as the sum of two vectors that are combined
row matrix: a matrix with only a single row
sample space: the set of all possible outcomes of an experiment
sampled data: data that is only a part of the available information
scalar: a constant
scalar: a constant or particular number
sequence: a set of elements ordered so they can be labelled with the positive integers
shares: certificates indicating partial ownership of a company
simple interest: interest on money borrowed or money lent calculated by multiplying the principal by the annual interest rate and by the time (in years)
sine curve: a graph from the family of functions of the form y = a sin( bx + c) + d
sinusoidal event: an event that produces a sine curve when graphed
sinusoidal regression: a method of finding a best-fit sine function for a given set of data
square matrix: a matrix with the same number of rows and columns
standard deviation: a measure of the dispersion of a frequency distribution
standard normal distribution: a normal distribution with a mean of 0 and a standard deviation of 1
stock: shares in a publicly traded company
template: a model that can be modified as required to solve problems, such as a prepared spreadsheet
theoretical probability: probability determined by a theoretical approach to the relative frequency of an event
transition matrix: a square matrix showing how theprobability of an event is dependent on the probability of another event occurring
tree diagram: a branching diagram illustrating all of the outcomes of an event or related events
triangle method of adding vectors: a method of finding the sum of two vectors arranged head-to-tail by completing a triangle
vector: a line segment that denotes magnitude and direction
Venn diagram: a diagram using circles inside a rectangle to model events
without limit: not bounded or continuing forever
zero vector: a vector that has no magnitude
z--score: the independent variable in a standard normal distribution
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