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The '''conditionality principle''' is a Fisherian principle of [[statistical inference]] that [[Allan Birnbaum]] formally defined and studied in his 1962 [[JASA]] article. Informally, the conditionality principle can be taken as the claim that experiments which were not actually performed are statistically irrelevant.
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Together with the [[sufficiency principle]], Birnbaum's version of the principle implies the famous [[likelihood principle]]. Although the relevance of the proof to data analysis remains controversial among statisticians, many Bayesians and likelihoodists consider the likelihood principle foundational for statistical inference.
 
==Formulation==
 
The conditionality principle makes an assertion about an experiment ''E'' that can be described as a mixture of several component experiments ''E<sub>h</sub>'' where ''h'' is an [[ancillary statistic]] (i.e. a statistic whose probability distribution does not depend on unknown parameter values). This means that observing a specific outcome ''x'' of experiment ''E'' is equivalent to observing the value of ''h'' and taking an observation ''x<sub>h</sub>'' from the component experiment ''E<sub>h</sub>''.  
 
The conditionality principle can be formally stated thus:
 
'''Conditionality Principle''': If ''E'' is any experiment having the form of a mixture of component experiments ''E<sub>h</sub>'', then for each outcome <math>(E_h, x_h)</math> of ''E'', [...] the evidential meaning of any outcome ''x'' of any mixture experiment ''E'' is the same as that of the corresponding outcome ''x<sub>h</sub>'' of the corresponding component experiment ''E<sub>h</sub>'', ignoring the over-all structure of the mixed experiment. (See Birnbaum 1962)
 
==References==
 
* {{cite book|last=Berger|first=J.O.|coauthors=and Wolpert, R.L.|title=The Likelihood Principle|edition=2nd|publisher=The Institute of Mathematical Statistics|location=Haywood, CA|year=1988|isbn=0-940600-13-7}}
* {{cite journal|last=Birnbaum|first=Allan|authorlink=Allan Birnbaum|year=1962|title=On the foundations of statistical inference|journal=[[Journal of the American Statistical Association]]|volume=57|issue=298|pages=269–326|doi= 10.2307/2281640|mr=0138176|jstor=2281640 }} ''(With discussion.)''
 
==Further reading==
{{Cite journal
| last1 = Kalbfleisch | first1 = J. D.
| title = Sufficiency and conditionality
| doi = 10.1093/biomet/62.2.251
| journal = Biometrika
| volume = 62
| issue = 2
| pages = 251&ndash;259
| year = 1975
| pmid = 
| pmc =
}}
 
[[Category:Statistical theory]]
[[Category:Statistical principles]]

Latest revision as of 21:11, 12 December 2014

In the real estate world, you commonly think of houses, building or any piece of land to use. But when you add investment to its word, it will give you a different definition. Once it generates income and the owner bought multiple pieces of real estate. Most likely, it is for rental purposes one of which will be the primary residence and others will be for rental income. There is also different tax implication (capital gain) when its use for gold bullion investment, as property value appraises over a period of time.

Similar to stocks, options can also be traded in a stock market but options holder can only buy or sell at a price range and in a specific time frame. Thus options are exercised. This is the major difference between stock trading and options. In stock trading you can buy or sell at any time of the day whereas in options you can only do this in a specified time frame.

I tried trading stocks. I ended up stopping because I wasn't successful. The reason I, like so many others, didn't find success was not just because I treated it like a hobby, not just because I didn't spend enough time doing it, not just because I was exceptionally lazy, and not just because I was looking for a quick buck. It was actually all of the above. A couple years ago, I thought I had some risk capital that I could play around with: sprinkle a little here, a little there, and so on. I thought little Jimmy Cramer could help me make some money and entertain me at the same time. Wrong!

There are many fun things to use a penny jar for. One could save to pay back debts, to fund a new car, to start investing in stocks, to save for a wedding or for an engagement ring. There are many things that could be achieved by gradually saving pennies.

When picking software you need to bear in mind how easy it is to use. Some of the best programs may come with a steep learning curve, so make sure you are willing to put in the effort to get everything you need out of the software. A great way to help make your decision is to sign up for a free trial, testing out the various features and ease of use until you are sure if you're happy with it or not.

One of the best things that online stock trading sites provide in this day and age is a wealth of information. You are not just signing up to trade with a site. You are signing up for a comprehensive service that will help you make better decisions as an investor. These days, you can look at charts, graphs, and all sorts indicators in order to tell where a stock might be headed next. This effectively cuts out the middle man and gives you the power to make your own choices. With the proper amount of research and the right resources, there is no reason why you can't be successful investing this way.