Open AccessDENOTING THE BASE‐FREE MEASURE OF CHANGE
Author(s) -
Messick Samuel
Publication year - 1980
Publication title -
ets research report series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.235
H-Index - 5
ISSN - 2330-8516
DOI - 10.1002/j.2333-8504.1980.tb01225.x
Subject(s) - measure (data warehouse) , base (topology) , position (finance) , mathematics , econometrics , statistics , computer science , economics , mathematical analysis , data mining , finance
Bond criticized the base‐free measure of change proposed by Tucker, Damarin, and Messick by pointing to an incorrect derivation which is here viewed instead as a correct derivation entailing an inadequately specified tacit assumption. Bond's revision leads to estimates of the correlation between initial position and change which are negatively biased by correlated errors, whereas the original approach, with the tacit assumption properly denoted, leads to unbiased values.