What Is Fundamental Analysis and What Is Its Goal

question 21

Essay

What is fundamental analysis and what is its goal?

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Definitions:

Probability

The likelihood or chance of an event occurring, often quantified as a number between 0 and 1.

Poisson Distribution

A statistical distribution predicting the probability of a given number of events occurring in a fixed interval of time or space, assuming the events happen with a constant mean rate independently of the time since the last event.

Reservation

The act of reserving something in advance, such as a service or accommodation, or a specific area of land set aside or preserved for a particular purpose, often referring to lands designated for indigenous peoples.

Tornado Chart

A type of bar chart used in sensitivity analysis which displays the comparative importance of variables, often in financial models.