Sunday, March 23, 2014



Some more basic functions, this time focusing on sequences of numbers. First sum.
let sum t = 

  Summation is the operation of adding a sequence of numbers

List.fold_left (fun acc x -> acc +. x) 0.0 t
Now, arithmetic_mean follows trivially.
let arithmetic_mean t = 

Simply the mean or average when the context is clear, is the sum
of a collection of numbers divided by the number of numbers in the

(sum t)/.(float_of_int (List.length t))
This formulation shows clearly the relationship between standard deviation and arithmetic mean.
let standard_deviation t =

For a finite set of numbers, the standard deviation is found by
taking the square root of the average of the squared differences
of the values from their average value.

 let av = arithmetic_mean t in
 let squared_diffs = List.fold_left 
  (fun acc xi -> ((xi -. av) *. (xi -. av)) :: acc) [] t
 in sqrt (arithmetic_mean squared_diffs)
The harmonic_mean function is, I find, a more interesting function.
let harmonic_mean t =

The harmonic mean is the preferable method for averaging
multiples, such as the price/earning ratio, in which price is in
the numerator. If these ratios are averaged using an arithmetic
mean (a common error), high data points are given greater weights
than low data points. The harmonic mean, on the other hand, gives
equal weight to each data point.

 let n = float_of_int (List.length t) in
 let denom=List.fold_left 
             (fun acc xi -> acc +. 1.0 /. xi) 0.0 t 
 in n /. denom

No comments:

Post a Comment