DEFINITION of 'Analysis Of Variances  ANOVA'
An analysis of the variation between all of the variables used in an experiment. Analysis of variance is used in finance in several different ways, such as to forecasting the movements of security prices by first determining which factors influence stock fluctuations. This analysis can provide valuable insight into the behavior of a security or market index under various conditions.
INVESTOPEDIA EXPLAINS 'Analysis Of Variances  ANOVA'
This type of analysis attempts to break down the various underlying factors that determine the price of securities as well as market behavior. For example, it could possibly show how much of a security's rise or fall is due to changes in interest rates. A ttest and ftest is used to analyze the results of an analysis of variance test to determine which variables are of statistical significance.

Variance
The spread between numbers in a data set, measuring Variance ... 
TTest
A statistical examination of two population means. A twosample ... 
Balanced ANOVA
A statistical test used to determine whether or not different ... 
Standard Deviation
1. A measure of the dispersion of a set of data from its mean. ... 
Semivariance
A measure of the dispersion of all observations that fall below ... 
Mean
The simple mathematical average of a set of two or more numbers. ...

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Simple random samples and stratified random samples differ in how the sample is drawn from the overall population of data. ... Read Full Answer >> 
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As a statistical sampling method, systematic sampling is simpler and more straightforward than random sampling. It can also ... Read Full Answer >> 
What is the difference between the standard error of means and standard deviation?
The standard deviation, or SD, measures the amount of variability or dispersion for a subject set of data from the mean, ... Read Full Answer >> 
What is the theory of asymmetric information in economics?
The theory of asymmetric information was developed in the 1970s and 1980s as a plausible explanation for common phenomena ... Read Full Answer >> 
How does market risk differ from specific risk?
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How is perpetuity used in the Dividend Discount Model?
The basic dividend discount model (DDM) creates an estimate of the constant growth rate, in perpetuity, expected for dividends ... Read Full Answer >>

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