1. The quantitative data are price and quantity demanded where income is also part of it.

2. The qualitative data is the data which shows all data or nothing, further said as the data which
shows the change occur in consumption from a period of the time due to any kind of change occur
in the country e.g. : change in the presidential status or change in any kind of activity
3. So the formulae: a+b*Pt+b2*It+b3*Mt+ et
A+b = Variables or parameters
Pt = Price over time
It = Income over a time
Mt = Mood of the country
eT= error could be caused ~ model doesnt shows the exact relationship
Types of the data collection:
1) Time series data:
It measures the data over a period of time which is: daily, monthly, weekly, yearly. For the daily
data set we will reach to the stock prices, for monthly we would use the reports over the
internet, for weekly we would use the news and the prices, for yearly we would use the reports
issued by the subjects.
2) Pooled data:
This contains the data of the sample as in India having 29 states in his economy so we will take
29 states as observations but for 10 years is the time period so observations occurred are 290
over 10 years.
3) Cross sectional data:
Data pooled from the different geographical area with a different period of time.
The pooled data is type of cross sectional data
Now at the end :
There are eight steps involved in evaluation of relationship between variables:
1. Stating the hypothesis
2. Collection of data
3. Specifying the model
4. Estimating parameters
5. Testing the specification of the model
6. Testing the hypothesis
7. Forecasting with the model
There are three types of data available to the analyst:
1) Time series: data collected over a period of time

2) Cross sectional: data is collected from different sectors( states, areas)

3) Pooled data: the data which is combining both the time and cross sectional

Doubts??
Panel data

Probability and probability distribution

Discrete random variable

1) The outcomes should be always positive
2) The outcomes can be easily countable
3) The outcomes could be measureable
Eg: number of days in a week, no. of days rainfall, no. of days I worked
Continuous Random variable
1) Infinite in nature,
2) The variable outcome could be any as in: it could be in small numbers like 0.5 or 1.2359 etc
3) E.g.: we can count the number of days rainfall occurred but we cant measure with the discrete
variables the measurement of the rain, it could be inches, semi- inches or quarter inches.

Note: the probability of an event is always sum to 1

Joint probability:
The joint probability of an event is that both conditional and unconditional events will occur
P(AB)= P(A|B)* p(B)
Joint probability = prob. Of conditional event * prob. Unconditional event

Frequency distribution
1) The frequency distribution is depend upon 4 basic principals
2) There are 4 steps to follow in the frequency distribution:
I. Define the interval= the lower and upper limit of the class
II. Tally the observation = the total of all the observation should be
equal to the number of events occurred
III. Count the observation = total of fallen observations

Optimal hedge ratio

Books to watch:
Education of speculator victor Niedherhoffer