fintech-algorithms
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Parameters, Statistics, Estimands, and Estimators

Install and import#

bash
npm install fintech-algorithms
ts
import { parametersStatisticsEstimandsAndEstimators } from "fintech-algorithms/foundations/sampling-estimation-and-statistical-inference/parameters-statistics-estimands-and-estimators";

Signature#

parametersStatisticsEstimandsAndEstimators(input)

Places the known population parameter from input.populationMean alongside the statistic computed from input.sample, and names which side is the estimand and which is the estimator.

Parameters#

NameTypeNotes
inputD00InputOne record. sample is the observed data and populationMean is the parameter it is meant to estimate. estimates and alpha are validated for the whole family before dispatch, so they must be present and valid here too.
sample: non-empty list of finite numbers, at least two of them · estimates: non-empty list of finite numbers · alpha: strictly between 0 and 1

Returns#

D00Output

An object with parameter (echoes populationMean), statistic (the sample mean), and the fixed labels estimand and estimator.

Errors#

  • When sample or estimates is missing, empty, or contains a non-finite number — both are parsed for every topic in the family, whether or not the topic uses them — throws RangeError
  • When sample holds fewer than two observations — throws RangeError
  • When alpha is not strictly between zero and one — throws RangeError

Complexity: time O(n + m), space O(n + m).

Worked example#

verified This is the worked example published in the article, replayed by the test suite on every run. The output cannot drift.

Input#

input
{
  "sample": [2, 3, 4, 3, 4],
  "estimates": [3, 3.1, 3.2, 3.3, 3.4],
  "populationMean": 3.2,
  "alpha": 0.05,
  "mseBenchmark": 0.1,
  "nullMean": 3,
  "alternativeMean": 3.5,
  "practicalThreshold": 0.1,
  "comparisons": 5
}

Call#

parametersStatisticsEstimandsAndEstimators(input)

Returns#

object with 2 fields: parameter, statistic

{
  "parameter": 3.2,
  "statistic": 3.2
}

Diagrams#

Parameters, Statistics, Estimands, and Estimators — article hero
Parameters, Statistics, Estimands, and Estimators — calculation ledger
Parameters, Statistics, Estimands, and Estimators — concept anatomy
Parameters, Statistics, Estimands, and Estimators — failure boundary
Parameters, Statistics, Estimands, and Estimators — method map
Parameters, Statistics, Estimands, and Estimators — scenario contrast

How it works#

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References#

The rest of the Sampling, Estimation, and Statistical Inference family#