Descriptive and machine learning statistical methods for finance: Prediction, classification, and uncovering complex patterns
Descriptive statistics refers to a set of fine and graphical tools used to epitomize and describe essential features of a dataset. These statistics provide a clear and concise representation of the data, enabling experimenters, judges, and decision-makers to gain valuable insight, identify patterns, and understand the characteristics of the information at hand. Descriptive statistics are the essential first step in fiscal analysis, used to epitomize and organize large datasets to reveal their main characteristics. They give a foundational understanding of asset returns, price movements, and threats. Machine learning (ML) models are based on statistical foundations to handle large volumes of data, model complex non-linear patterns, and perform prediction (regression) and classification tasks.