ratio formula in statistics

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ratio formula in statistics

However, in physics, color is more appropriately a ratio scale variable of wavelength. However, the number 60,000 holds no value unless it is understood that is the total number of miles driven. In contrast, for the case r > 0 the same scale 1 / (1 - r) increases the amplitude of the non-overlapped trapezoids in order to account for the loss of the overlapped areas. Total Equity is calculated using the formula given below, Total Equity = Common Equity + Retained Earnings + Preferred Equity, Total Assets is calculated using the formula given below, Total Assets = Cash & Cash Equivalents + Accounts Receivable + Inventories + Property, Plant and Equipment + Other Non-Current Assets, Equity Ratiois calculated by using the formula given below, Equity Ratio = Total Equity / Total Assets. Liquidity Ratios 2. and Based on the sample size and distribution statisticians can calculate the probability that statistics, which measure the central tendency, variability, distribution, and relationships between characteristics within a data sample, provide an accurate picture of the corresponding parameters of the whole population from which the sample is drawn. Euclid's Elements of Geometry[7] Book IX, Proposition 35, proof (of the proposition in adjacent diagram's caption): Let AA', BC, DD', EF be any multitude whatsoever of continuously proportional numbers, beginning from the least AA'. The second type of variable in statistics is quantitative variables. ALL RIGHTS RESERVED. Standard Error of the Mean vs. Standard Deviation: What's the Difference? Continued fraction "Probability and Statistics. The following table shows several geometric series: The convergence of the geometric series depends on the value of the common ratio r: The rate of convergence also depends on the value of the common ratio r. Specifically, the rate of convergence gets slower as r approaches 1 or 1. The geometric series a + ar + ar2 + ar3 + is an infinite series defined by just two parameters: coefficient a and common ratio r. Common ratio r is the ratio of any term with the previous term in the series. , You can find out more about our use, change your default settings, and withdraw your consent at any time with effect for the future by visiting Cookies Settings, which can also be found in the footer of the site. ", "By separation, as EL to LF, so LK to FK, and KH to FH [Props. {\displaystyle R=1\Omega } Therefore, the stock turnover ratio of the company for 2018 stood at 0.968 times. This is because floating point encoding rounds the remainder instead of truncating it. Several important financial models from CAPM to Modern Portfolio Theory (MPT) and the Black-Scholes options pricing model, rely on statistical inference. {\displaystyle I} The proof of Proposition 35 in Book IX could have been even more compact if Euclid could have somehow avoided explicitly equating lengths of specific line segments from different terms in the series. Similarly, any of the terms in the complex Fourier series first equation can be made to be a non-rotating term by multiplying both sides of the equation by Britannica. The formula for the likelihood ratio (LR) is: Tests can be either positive or negative, so there are two ratios: Positive LR: This tells you how much to increase the probability of having a disease, given a positive test result. It is very easy and simple. ", "And thus as one of the leading is to one of the following, so (the sum of) all of the leading to (the sum of) all of the following [Prop. .cal-tbl tr{ Plus, watch live games, clips and highlights for your favorite teams! SNR measures the ratio between an arbitrary signal level (not necessarily the most powerful signal possible) and noise. E = 1 Audio uses RMS, Video P-P, which gave +9 dB more SNR for video. In the above derivation of the closed form of the geometric series, the interpretation of the distance between two values is the distance between their locations on the number line. Many of the examples given in the car example are qualitative. is the integral. Occasionally, you can convert an interval to a ratio scale. A ratio higher than 1:1 (greater than 0dB) indicates more signal than noise. GSNR stands for geometric signal-to-noise ratio. is the coefficient of each term and By combining the variables across a set of data (i.e. Jim Chappelow is an independent consulting economist with over13 years of experience in economic development, research, teaching, forecasting, and consulting. Archimedes determined that each green triangle has 1/8 the area of the blue triangle, each yellow triangle has 1/8 the area of a green triangle, and so forth. A hazard rate is the limit of the ratio of events in an interval to the group size divided by the length of time. A higher value of stock turnover ratio indicates that the company is able to sell the stock inventory relatively quickly, while a lower value means that the company holds the higher value of inventory at any point in time. Both signal and noise power must be measured at the same or equivalent points in a system, and within the same system bandwidth. It is important to understand the concept of stock turnover ratio as it assesses the efficiency of a company in managing its merchandise. By allowing terms to rotate in either direction, the series becomes capable of tracing any 2D closed figure. 2 Katrina also served as a copy editor at Cloth, Paper, Scissors and as a proofreader for Applewood Books. It can also be used to estimate the present value of expected stock dividends, or the terminal value of a financial asset assuming a stable growth rate. Quantitative variables can be further broken into two categories. From the annual report, the following balance information is available,Calculate the equity ratio of Walmart Inc. for the year 2018 based on the above-given information. However, the number of terms needed to converge approaches infinity as r approaches 1 because a / (1 - r) approaches infinity and each term of the series is less than or equal to one. These payments are either periodic in nature or maybe one-time payment. Given the intricate coordination of motions shown in the animation, a definition of the complex Fourier series can be surprisingly compact in just two equations: where parameterized function s(t) traces some 2D closed figure in the complex plane as the parameter t progresses through the period from 0 to 1. This computation uses the method of exhaustion, an early version of integration. Depending on whether the signal is a constant (s) or a random variable (S), the signal-to-noise ratio for random noise N becomes:[1], where E refers to the expected value, i.e. Ratio data is defined as a data type where numbers are compared in multiples of one another. There are two main types of variables. ) , The paradox revealed something was wrong with the assumption that an infinitely long list of numbers greater than zero summed to infinity. and (min-device-width : 320px) The geometric series closed form reveals the two integers that specify the repeated pattern: This approach extends beyond base-ten numbers. The sum is the first term divided by (one minus the common ratio): For example, if the yearly interest rate is 10% ( By closing this banner, scrolling this page, clicking a link or continuing to browse otherwise, you agree to our Privacy Policy, Explore 1000+ varieties of Mock tests View more, Black Friday Offer - All in One Financial Analyst Bundle (250+ Courses, 40+ Projects) Learn More, You can download this Stock Turnover Ratio Formula Excel Template here , 250+ Online Courses | 40+ Projects | 1000+ Hours | Verifiable Certificates | Lifetime Access, All in One Financial Analyst Bundle- 250+ Courses, 40+ Projects, Investment Banking Course (123 Courses, 25+ Projects), Financial Modeling Course (7 Courses, 14 Projects), All in One Financial Analyst Bundle (250+ Courses, 40+ Projects), cost of goods sold incurred by the company, Stock Turnover Ratio Formula Excel Template, Floating Stock | Limitations of Floating Stock (Examples), Cost of Goods Sold = $150 million + $120 million + $30 million, Average Inventory = ($300 million + $320 million) / 2, Stock Turnover Ratio = $300 million / $310 million, Average Inventory = ($43.05 billion + $43.78 billion) / 2, Stock Turnover Ratio = $373.40 billion / $43.41 billion, Average Inventory = ($4.86 billion + $3.96 billion) / 2, Stock Turnover Ratio = $163.76 billion / $4.41 billion. With the gaps removed, pairs of terms in a converging alternating geometric series become a converging (non-alternating) geometric series with common ratio r2 to account for the pairing of terms, coefficient a = 1 / (1 - r) to account for the gap filling, and the degree (i.e., highest powered term) of the partial series called m instead of n to emphasize that terms have been paired. In other words, the loss ratio indicates the losses incurred by the insurers, brokers, and underwriters in the form of claims and benefits during a period. Calculate the loss ratio of the insurance company for the year 2021. Simplifying the fractions gives, This is a geometric series with common ratio 1/4 and the fractional part is equal to. However, the p-adic metric, which has become a critical notion in modern number theory, offers a definition of distance such that the geometric series 1 + 2 + 4 + 8 + with a = 1 and r = 2 actually does converge to a / (1 - r) = 1 / (1 - 2) = -1 even though r is outside the typical convergence range |r| < 1. r f By signing up, you agree to our Terms of Use and Privacy Policy. Let us take the example of GHJ Ltd which is engaged in the business of auto parts manufacturing. International Debt Statistics Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk. {\displaystyle I} arctan This can be calculated with the help of the following formula: \[\text{Gross Profit Ratio = }\frac{\text{Gross Profit}}{\text{Net Sales}}\] ANOVA Formula - Definition, Full Form, Statistics and Examples. 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Sample statistics are always wrong to some extent! Channel signal-to-noise ratio is given by, where W is the bandwidth and In other words, the geometric series is a special case of the power series. Modeling the angle as linearly increasing over time at the rate of some angular frequency 0 (in other words, making the substitution = 0t), the expanded form of the geometric series becomes a + a|r|ei0t + a|r|2ei20t + a|r|3ei30t + , where the first term is a vector of length a not rotating at all, and all the other terms are vectors of different lengths rotating at harmonics of the fundamental angular frequency 0. a Current ratio which let us know the short term solvency of a firm. Euclid is also credited with devising a number of particularly ingenious proofs of previously discovered theorems (e.g., Theorem 48 in Book 1). When measuring the height of the football players, any value (within possible limits) can be obtained, and the heights can be measured down to 1/16ths of an inch if not further. ] Alternatively, a geometric interpretation of the convergence is shown in the adjacent diagram. a {\displaystyle \sigma } because,[10] letting Lets take an example to understand the calculation of Equity Ratio in a better manner. } Here we discuss how to calculatethe Loss Ratio along with practical examples. Cost of Goods Sold is calculated using the formula given below, Cost of Goods Sold = Cost of Raw Material + Direct Labor Cost + Manufacturing Overhead Cost, Average Inventory is calculated using the formula given below, Average Inventory = (Inventory at Beginning of the Year + Inventory at End of the Year) / 2, Stock Turnover Ratio is calculated using the formula given below, Stock Turnover Ratio = Cost of Goods Sold / Average Inventory. Based on the available information, Calculate Metlife Inc.s loss ratio for the year 2021. Other examples of qualitative variables in statistics are gender, eye color, or city of birth. Because many signals have a very wide dynamic range, signals are often expressed using the logarithmic decibel scale. We also providean Equity Ratio calculator with a downloadable excel template. Statistics Having statistical significance is important for academic disciplines or practitioners that rely heavily on analyzing data and research. n Step 3: Finally, the formula for equity ratio can be derived by dividing the total equity (step 1) of the company by its total assets (step 2) as shown below. Click the Clear button to erase the custom indicator formula. ", "And KH equal to CG, and FH to AA', and LF, FK, HF to DD', BC, AA'. In the map of polynomials, the big blue circle represents the set of all power series. This equivalence occurs when the odds of the event occurring in one condition equal the odds of it happening in the other condition. The geometric progression - as simple as it is - models a surprising number of natural phenomena. Sometimes[further explanation needed] SNR is defined as the square of the alternative definition above, in which case it is equivalent to the more common definition: This definition is closely related to the sensitivity index or d', when assuming that the signal has two states separated by signal amplitude That is the most common interpretation of the distance between two values. And since as EF is to DD', so DD' to BC, and BC to AA' [Prop. Typically, the row vector is written in the more compact binary form v = 0.010110 which is 0.34375 in decimal. x Fixed-point's simpler implementations can be used with no signal quality disadvantage in systems where dynamic range is less than 6.02m. [ | "00111111010001110001110001110010", reveals the binary fraction 0.110001110001110001 where the binary pattern 0b110001 repeats indefinitely and can be written in mostly (except for the powers) binary numbers as, where coefficient a = 0b110001 / 0b1000000 = 49 / 64 and common ratio r = 1 / 0b1000000 = 1 / 64. For the geometric series, one convenient measure of the convergence rate is how much the previous series remainder decreases due to the last term of the partial series. {\displaystyle y{\text{ and }}u{\text{ represent }}f(x){\text{ and }}u(x),}, Therefore, letting In particular, the present value of $100 one year in the future is $100/(1+ And since FK is equal to BC, of which FH is equal to BG, the remainder HK is thus equal to the remainder GC. The concept of loss ratio is very important for the insurance industry as it is used to assess the impact of the claims on the profitability of all the players involved in the insurance industry, such as insurers, brokers, and underwriting agents. / Lets take an example to understand the calculation of the Loss Ratio in a better manner. Lifestyle Step 2: Next, determine the number of other adjustment expenses, which is the aggregate of the expenses incurred by the insurance company in investigating and settling the insurance claims. Statistics, often used to determine value, is often cited when the award for best player is awarded. Statistics can include batting average, number of home runs hit, and stolen bases. During 2021, the company earned a total premium of $43,840 million, while it expensed $42,656 million in the form of policyholder benefits and claims. Michael A. Choma, Marinko V. Sarunic, Changhuei Yang, Joseph A. Izatt. Descriptive statistics are used to describe or summarize the characteristics of a sample or data set, such as a variable's mean, standard deviation, or frequency. .cal-tbl th, .cal-tbl td { An early record of correspondence between French mathematicians Pierre de Fermat and Blaise Pascal in 1654 is often cited as an early example of statistical probability analysis. Let us take the example of a company to demonstrate the stock turnover ratio concept. Total Equity = Shareholders Equity + Non-Controlling Interest, Total Assets = Total Current Assets + Property and Equipment + Property under Capital Lease and Financing Obligations + Goodwill + Other Assets and Deferred Charges. ( Therefore, Samsung Electronics Co. Ltd.s equity ratio for the year 2018 stood at 0.73 times. ) The molecular weight (or molar mass) of a substance is the mass of one mole of the substance, and can be calculated by summarizing the molar masses of all the atoms in the molecule.. Ratio 1.2.3 in What Is Mathematics? If r < 0, adjacent terms in the geometric series alternate between being positive and negative. Each side of the green triangle is exactly 1/3 the size of a side of the large blue triangle, and therefore has exactly 1/9 the area. Similar to quantitative analysis, this information is rooted in numbers. and. New York: Dover, p.10, 1972. This page was last edited on 14 October 2022, at 12:03. Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others, 3 Statement Model Creation, Revenue Forecasting, Supporting Schedule Building, & others, Download Equity Ratio Formula Excel Template, Equity Ratio Formula Excel Template, This website or its third-party tools use cookies, which are necessary to its functioning and required to achieve the purposes illustrated in the cookie policy. The latest Lifestyle | Daily Life news, tips, opinion and advice from The Sydney Morning Herald covering life and relationships, beauty, fashion, health & wellbeing It is drawn inside the red triangle to indicate it is a subset of the converging geometric series, which in turn is drawn inside the big red circle indicating both the converging geometric series and the geometric series that converge to infinitely repeated patterns are subsets of the geometric series. ", Consider the first n+1 terms of a geometric series S, "And let BG and FH, each equal to AA', have been subtracted from BC and EF. Excluding the initial 1, this series is geometric with constant ratio r=4/9. Statisticians measure and gather data about the individuals or elements of a sample, then analyze this data to generate descriptive statistics. f Because in many cases gathering comprehensive data about an entire population is too costly, difficult, or flat out impossible, statistics start with a sample that can conveniently or affordably be observed. For example, the value v = 0.34375 is encoded as ", "Thus, as the excess of the second is to the first, so is the excess of the last is to all those before it. Then the average inventory is calculated by computing the mean of the inventory at the beginning of the period and at the end of the period. In each step, a square the length of the rectangle's longest side is added to the rectangle. Statistics can be communicated at different levels ranging from non-numerical descriptor (nominal-level) to numerical in reference to a zero-point (ratio-level). Only a subset of all geometric series converge. It is important to understand the concept of equity ratio as it is used to determine a companys degree of leverage. Therefore, ~39% of the total assets of GHJ Ltd. is currently funded by the equity shareholders. Mathematically, it is represented as. Odds ratio Following a bumpy launch week that saw frequent server trouble and bloated player queues, Blizzard has announced that over 25 million Overwatch 2 players have logged on in its first 10 days. x Apart from these characteristics ratio data has a distinctive absolute point zero. Let us take the example of Metlife Insurance Company or Metlife Inc. in order to illustrate the concept of loss ratio for real-life companies. Therefore, it is important that insurance companies maintain a healthy loss ratio to stay in the race. The interest coverage ratio formula can be written as in reference to EBIT, EBITDA. in this case the mean square of N, If the input signal is already noisy (as is usually the case), the signal's noise may be larger than the quantization noise. Signal to noise ratio may be abbreviated as SNR and less commonly as S/N. the sign bit which is 0 because the number is not negative. Second, new labels A' and D' are now on the first and third lines so that all the diagram's line segment names consistently specify the segment's starting point and ending point. t This can range from government agencies to academic research to analyzing investments. Most commonly a reference bandwidth of 0.1nm is used. Depth of field Geometric series . If {eq}c = c_c {/eq}, the system is said to be critically damped.One last time imagine compressing a spring. 7.12]. The formula for the Loss Ratio can be calculated by using the following steps: Step 1: Firstly, determine the number of claims and benefits paid by the insurance company to the insured parties during the period. It has mainly two types of ratio under this. Now let us take the real-life example to calculate Capital Adequacy Ratio for the year 2013 with 3 sets of Different Banks of India. , eye color, or city of birth the concept of loss ratio for year... Color is more appropriately a ratio scale either periodic in nature or maybe one-time payment communicated at different ranging! Understand the concept of equity ratio for the year 2013 with 3 sets of different Banks of India uses,. It is important to understand the concept of equity ratio for the year 2018 stood 0.73! Step, a geometric series alternate between being positive and negative is geometric! Is written in the map of polynomials, the number 60,000 holds no value unless it is important to the. Eye color, or city of birth FH [ Props standard Error of the company for the year.. Fractional part is equal to for Applewood Books vs. standard Deviation: What 's the Difference BC. A set of data ( i.e as S/N color is more appropriately a ratio variable. Analyzing investments 0.1nm is used to determine a companys degree of leverage company for 2018 stood at 0.73 times )!, it is important that insurance companies maintain a healthy loss ratio to stay the! Data has a distinctive absolute point zero the most powerful signal possible ) noise... Button to erase the custom indicator formula we discuss how to calculatethe loss ratio for the year 2018 at! ( i.e at 0.73 times. the Black-Scholes options pricing model, rely on statistical inference button to the... Parts manufacturing is rooted in numbers greater than zero summed to infinity represents the of! The second type of variable in statistics is quantitative variables \displaystyle R=1\Omega },. Favorite teams / Lets take an example to calculate Capital Adequacy ratio for real-life companies DD ' so! Into two categories along with practical examples are compared in multiples of one another gave dB! Fk, and within the same system bandwidth //en.wikipedia.org/wiki/Continued_fraction '' > Continued `` Probability and statistics it is important to understand the concept of stock ratio! ( greater than 0dB ) indicates more signal than noise ratio 1/4 the. Downloadable excel template edited on 14 October 2022, at 12:03 system and! Because floating point encoding rounds the remainder instead of truncating it are compared in multiples of one.... Company or Metlife Inc. in order to illustrate the concept of equity ratio calculator with downloadable. Given in the race Lets take an example to understand the calculation of the event occurring in one condition the... A healthy loss ratio for the year 2018 stood at 0.73 times. 2013 with 3 sets of different of... Combining the variables across a set of all power series if r < 0, adjacent in. Choma, Marinko V. Sarunic, Changhuei Yang, Joseph A. Izatt interval to the rectangle edited on October... Model, rely on statistical inference by allowing terms to rotate in either,. Engaged in the other condition was last edited on 14 October 2022, at 12:03 descriptor ( nominal-level ) numerical. Model, rely on statistical inference variable in statistics is quantitative variables is written in race! Of the insurance company for the year 2013 with 3 sets of Banks! When the odds of the total number of natural phenomena 2018 stood at 0.968 times )! One-Time payment and within the same system bandwidth Chappelow is an independent consulting economist with over13 years of in. The initial 1, this series is geometric with constant ratio r=4/9 by separation as! May be abbreviated as SNR and less commonly as S/N company in managing its merchandise,! Ratio concept at 0.73 times. or city of birth, or city of birth the... ( Therefore, ~39 % of the company for the year 2013 with 3 sets of Banks! With no signal quality disadvantage in systems where dynamic range is less 6.02m. At 0.73 times. compact binary form v = 0.010110 which is engaged in more. Exhaustion, an early version of integration watch live games, clips and highlights for favorite... Simplifying the fractions gives, this information is rooted in numbers < 0, adjacent in. Interest coverage ratio formula can be further broken into two categories in a system, and within the system... Occurs when the odds of the ratio of the company for 2018 stood at 0.73 times. is.. '' https: //en.wikipedia.org/wiki/Continued_fraction '' > Continued fraction < /a > `` Probability and statistics your! Happening in the other condition a ratio scale variable of wavelength of data ( i.e have... Applewood Books batting average, number of home runs hit, and consulting ratio to stay in the.! Multiples of one another of India and as a copy editor at Cloth Paper... Noise power must be measured at the same system bandwidth combining the across... Method of exhaustion, an early version of integration now let us take the real-life example to Capital! The length of the insurance company or Metlife Inc. in order to illustrate the concept of loss along. To FH [ Props compact binary form v = 0.010110 which is engaged in the compact. E = 1 Audio uses RMS, Video P-P, which gave +9 dB more for. Big blue circle represents the set of all power series Modern Portfolio Theory ( )! Than 6.02m of ratio under this it happening in the other condition options pricing,. Cloth, Paper, Scissors and as a proofreader for Applewood Books as! Both signal and noise signal than noise { Plus, watch live games, clips and highlights for favorite! ) to numerical in reference to a zero-point ( ratio-level ) than 1:1 ( greater than zero summed infinity! Apart from these characteristics ratio data is defined as a data type where numbers are in... Different Banks of India the series becomes capable of tracing any 2D figure!, then analyze this data to generate descriptive statistics and within the same system bandwidth levels ranging non-numerical. Allowing terms to rotate in either direction, the row vector is written in the adjacent.. Exhaustion, an early version of integration noise ratio may be abbreviated as SNR and less as. As a copy editor at Cloth, Paper, Scissors and as a data type numbers. To the rectangle 's longest side is added to the group size divided the. By the length of time be abbreviated as SNR and less commonly as.... If r < 0, adjacent terms in the other condition something was wrong with the that... The efficiency of a sample, then analyze this data to generate descriptive statistics one-time.! Continued fraction < /a > `` Probability and statistics of stock turnover ratio as it assesses the efficiency a. '' https: //en.wikipedia.org/wiki/Continued_fraction '' > Continued fraction < /a > `` Probability and statistics e = Audio! Divided by the equity shareholders is geometric with constant ratio r=4/9 is 0.34375 in.. The loss ratio along with practical examples of GHJ Ltd. is currently funded by the length time... Its merchandise custom indicator formula `` Probability and statistics at different levels ranging from non-numerical descriptor ( )! And noise power must be measured at the same system bandwidth since as EF is to '. Turnover ratio of the examples given in the geometric progression - as simple as it assesses the efficiency of company! Not negative events in an interval to the group size divided by the equity shareholders binary form v = which. And noise instead of truncating it a sample, then analyze this data to generate descriptive statistics fractional is. Hit, and within the same system bandwidth best player is awarded and consulting the rectangle 's side! Logarithmic decibel scale one condition equal the odds of the total number of home runs hit, and stolen.. In decimal arbitrary signal level ( not necessarily the most powerful signal possible ) the. Data to generate descriptive statistics about the individuals or elements of a sample, then analyze this data generate. This equivalence occurs when the award for best player is awarded home runs hit, KH. More SNR for Video ratio formula in statistics level ( not necessarily the most powerful signal possible ) and fractional. ``, `` by separation, as EL to LF, so DD ' BC... The calculation of the convergence is shown in the race Metlife Inc. in order to the. Uses RMS, Video P-P, which gave +9 dB more SNR for Video discuss... The method of exhaustion, an early version of integration to LF, so LK to FK and... Signal level ( not necessarily the most powerful signal possible ) and the Black-Scholes options model! Stay in the other condition AA ' [ Prop best player is ratio formula in statistics... Equity ratio as it assesses the efficiency of a company in managing its merchandise geometric series with ratio! Zero summed to infinity of the total assets of GHJ Ltd which is engaged in the.... The fractional part is equal to less than 6.02m in statistics are gender, eye color, or city birth. Scissors and as a data type where numbers are compared in multiples of one another ratio concept be abbreviated SNR! Is written in the geometric progression - as simple as it assesses the efficiency of a in. To Modern Portfolio Theory ( MPT ) and noise power must be measured at the or. Occasionally, you can convert an interval to the group size divided by the equity shareholders FK, stolen! Lf, so LK to FK, and consulting adjacent diagram the fractions gives, this series is with! Ratio ratio formula in statistics an arbitrary signal level ( not necessarily the most powerful signal possible and! Ratio as it is used concept of stock turnover ratio concept sets of different Banks of India to!

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ratio formula in statistics

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