MemoryMemory is the faculty of the mind by which data or information is encoded, stored, and retrieved when needed. It is the retention of information over time for the purpose of influencing future action. If past events could not be remembered, it would be impossible for language, relationships, or personal identity to develop. Memory loss is usually described as forgetfulness or amnesia. Memory is often understood as an informational processing system with explicit and implicit functioning that is made up of a sensory processor, short-term (or working) memory, and long-term memory.
Unit rootIn probability theory and statistics, a unit root is a feature of some stochastic processes (such as random walks) that can cause problems in statistical inference involving time series models. A linear stochastic process has a unit root if 1 is a root of the process's characteristic equation. Such a process is non-stationary but does not always have a trend. If the other roots of the characteristic equation lie inside the unit circle—that is, have a modulus (absolute value) less than one—then the first difference of the process will be stationary; otherwise, the process will need to be differenced multiple times to become stationary.
Partial autocorrelation functionIn time series analysis, the partial autocorrelation function (PACF) gives the partial correlation of a stationary time series with its own lagged values, regressed the values of the time series at all shorter lags. It contrasts with the autocorrelation function, which does not control for other lags. This function plays an important role in data analysis aimed at identifying the extent of the lag in an autoregressive (AR) model.
Statistical parameterIn statistics, as opposed to its general use in mathematics, a parameter is any measured quantity of a statistical population that summarises or describes an aspect of the population, such as a mean or a standard deviation. If a population exactly follows a known and defined distribution, for example the normal distribution, then a small set of parameters can be measured which completely describes the population, and can be considered to define a probability distribution for the purposes of extracting samples from this population.
Arch bridgeAn arch bridge is a bridge with abutments at each end shaped as a curved arch. Arch bridges work by transferring the weight of the bridge and its loads partially into a horizontal thrust restrained by the abutments at either side. A viaduct (a long bridge) may be made from a series of arches, although other more economical structures are typically used today. List of Roman bridgesList of medieval stone bridges in Germany and List of medieval bridges in France Possibly the oldest existing arch bridge is the Mycenaean Arkadiko Bridge in Greece from about 1300 BC.
Encoding (memory)Memory has the ability to encode, store and recall information. Memories give an organism the capability to learn and adapt from previous experiences as well as build relationships. Encoding allows a perceived item of use or interest to be converted into a construct that can be stored within the brain and recalled later from long-term memory. Working memory stores information for immediate use or manipulation, which is aided through hooking onto previously archived items already present in the long-term memory of an individual.
Autoregressive conditional heteroskedasticityIn econometrics, the autoregressive conditional heteroskedasticity (ARCH) model is a statistical model for time series data that describes the variance of the current error term or innovation as a function of the actual sizes of the previous time periods' error terms; often the variance is related to the squares of the previous innovations. The ARCH model is appropriate when the error variance in a time series follows an autoregressive (AR) model; if an autoregressive moving average (ARMA) model is assumed for the error variance, the model is a generalized autoregressive conditional heteroskedasticity (GARCH) model.
Volatility (finance)In finance, volatility (usually denoted by σ) is the degree of variation of a trading price series over time, usually measured by the standard deviation of logarithmic returns. Historic volatility measures a time series of past market prices. Implied volatility looks forward in time, being derived from the market price of a market-traded derivative (in particular, an option).
Volatility smileVolatility smiles are implied volatility patterns that arise in pricing financial options. It is a parameter (implied volatility) that is needed to be modified for the Black–Scholes formula to fit market prices. In particular for a given expiration, options whose strike price differs substantially from the underlying asset's price command higher prices (and thus implied volatilities) than what is suggested by standard option pricing models. These options are said to be either deep in-the-money or out-of-the-money.
Pointed archA pointed arch, ogival arch, or Gothic arch is an arch with a pointed crown, whose two curving sides meet at a relatively sharp angle at the top of the arch. This architectural element was particularly important in Gothic architecture. The earliest use of a pointed arch dates back to bronze-age Nippur. As a structural feature, it was first used in eastern Christian architecture, Byzantine architecture and Sasanian architecture, but in the 12th century it began to be used in France and England as an important structural element, in combination with other elements, such as the rib vault and later the flying buttress.
Implied volatilityIn financial mathematics, the implied volatility (IV) of an option contract is that value of the volatility of the underlying instrument which, when input in an option pricing model (such as Black–Scholes), will return a theoretical value equal to the current market price of said option. A non-option financial instrument that has embedded optionality, such as an interest rate cap, can also have an implied volatility. Implied volatility, a forward-looking and subjective measure, differs from historical volatility because the latter is calculated from known past returns of a security.
Implicit memoryIn psychology, implicit memory is one of the two main types of long-term human memory. It is acquired and used unconsciously, and can affect thoughts and behaviours. One of its most common forms is procedural memory, which allows people to perform certain tasks without conscious awareness of these previous experiences; for example, remembering how to tie one's shoes or ride a bicycle without consciously thinking about those activities.
