SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Micron Only Forum
MU 246.84+4.2%Nov 14 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jimbo who wrote (51092)4/6/2000 8:00:00 PM
From: Land_Lubber  Read Replies (1) of 53903
 
Sorry, jimbo, I don't have a link.

It is formed by taking the time and sales data between a certain time (t0) and the current time and calculating a linear regression line for it. This becomes the channel axis. Then go though the same data again and find the difference between the regression line and the T&S data. Take the square-root of the average of the square of all these differences. This is sigma, the standard deviation of the T&S data from the regression line. Now plot two lines parallel to the regression line, one above it and one below it, but each separated vertically from the channel axis by two times sigma (i.e., the total vertical width is 4 times sigma).

If T&S data is randomly distributed (Gaussian) around the regression line (which of course it is not, but this is the theory) then 95% of the T&S data will be within the 2-sigma band. The "Central Limit Theorm" shows that non-Gaussian distributions can obey Gaussian statistics in the limit of many samples.

This is basic Stats 101, you probably have an old college text in the basement with all this stuff in it.

Land_Luber
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext