Comparing Kr And Parametric Regression

The most well-known parametric method for data modeling is the method of least squares. In Appendix A the method is developed for cases in which the relationship between the dependent variable y and the m independent variables x to xm is linear with respect to the p parameters a to ap of the model. Linearity is not a limitation of this method. More generally the relationship may be nonlinear, and the dependent variable y may be a vector.1-3 Easily usable software is available for general...

Acknowledgments

I am most indebted to David Aronson for introducing me to the field of financial market forecasting. What started out as a summer project at Raden Research in the early 1980's has turned out to be a long-term relationship. Through the many projects that we've worked on together I've developed an understanding of what is required to develop models and how one goes about testing and applying them. A number of Raden customers have given me the opportunity to develop software and to learn what the...