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Barclay developed two interactive computer games.He didn't do it entirely alone.Last year he started a small company,hired two programmers,and a marketing graduate.He considers himself a cutting-edge kind of guy and wants to position his company the same.Soliciting your advice as to how he should structure his organization as he moves forward,you suggest that he hire a few potential customers to join his team of employees as product testers.And,maybe he should solicit globally.The structure you have described would simulate a line and staff organization.
Probability Distribution
A mathematical function that provides the probabilities of occurrence of different possible outcomes for an experiment.
Correlation Coefficient
A statistical measure that calculates the strength and direction of the relationship between two variables, ranging from -1 to 1.
Standard Deviation
A statistical measure that quantifies the variation or dispersion of a set of data points, often used to assess the volatility of an investment.
Separation Property
The property that portfolio choice can be separated into two independent tasks: (1) determination of the optimal risky portfolio, which is a purely technical problem, and (2) the personal choice of the best mix of the risky portfolio and the risk-free asset.
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