# Ryangineer

## Artificial IntelligenceFinance

"Young man, in mathematics you don't understand things. You just get used to them."
John Von Neumann

### Artificial Intelligence Fundamentals

#### Expert Systems

• ##### Weak Methods
"[G]eneral-purpose search mechanism trying to string together elementary reasoning steps to find complete solutions." (Russell, p. 22)

### Finance Fundamentals

#### Data Processing

Market data is temporal in nature → a series of trading events that will happen in a moment of time.
• ##### t-Statistic
Way of testing probability getting as large of mean with correct assumptions made to build our model of strategy returns
• ##### Probability Density Function (PDF)
An equation that defines a probability distribution; for every number from negative infinity to positive infinity, the PDF gives a probability that this number will be generated
• ##### Box-Cox Transformation
Way to make our data normally distributed & homoscedastic (same over time); a monotonic transformation that changes the value of the dataset, but preserves their relative order

### Macroeconomics

"The branch of economics that deals with the structure, performance, behavior, and decision-making of the whole, or aggregate, economy. The two main areas of macroeconomic research are long-term economic growth and shorter-term business cycles." Investopedia

#### Inequality

• ##### Gini Coefficient
"A single number that demonstrates a degree of inequality in a distribution of income/wealth." Wikipedia
• ##### Kuznets Curve
"[E]xpresses a hypothesis advanced by economist Simon Kuznets in the 1950s & 1960s. According to this hypothesis, as an economy develops, market forces first increase and then decrease economic inequality." Wikipedia