Financial Mathematics Topics

Best Practices for Managing Supply Chain Disruption Risk in Manufacturing
Financial Mathematics Topics

Best Practices for Managing Supply Chain Disruption Risk in Manufacturing

- by Nathan Robinson

In today’s interconnected global economy, manufacturing supply chains face constant threats, ranging from geopolitical conflicts and natural disasters to material shortages and cyber-attacks. Building a resilient and agile supply chain is no longer a luxury but a fundamental requirement for business continuity and sustained profitability. Managing supply chain disruption risk in manufacturing requires a proactive, multi-faceted approach.

1. Enhance Visibility and Risk Assessment

The first step toward resilience is knowing your supply chain intimately—not just your immediate (Tier 1) suppliers, but their suppliers (Tier 2 and beyond) as well.

  • Multi-Tier Mapping: Go beyond Tier 1. Use technology and supplier questionnaires to map out your entire supply chain, identifying the source of critical components and raw materials. Disruptions often originate at sub-tier levels that are otherwise invisible.
  • Comprehensive Risk Assessment: Conduct regular, detailed risk assessments. Pinpoint specific vulnerabilities, such as:
    • Single Points of Failure (SPOFs): Reliance on one supplier, one geographic
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Developing a Quantitative Risk Assessment Framework for IT Projects
Financial Mathematics Topics

Developing a Quantitative Risk Assessment Framework for IT Projects

- by Nathan Robinson

In the dynamic world of IT, projects are inherently fraught with risks – from budget overruns and schedule delays to technical failures and security vulnerabilities. While qualitative risk assessments (e.g., high, medium, low) provide a general understanding, a quantitative risk assessment framework offers a more precise, data-driven approach. This allows organizations to prioritize risks based on their potential financial impact and likelihood, leading to more informed decision-making and better project outcomes.

Why Quantitative Risk Assessment?

Quantitative risk assessment moves beyond subjective judgments by assigning numerical values to the probability of a risk occurring and the financial impact it would have.This approach offers several key advantages:

  • Objective Prioritization: Risks are ranked by their calculated monetary exposure, ensuring resources are allocated where they matter most.
  • Improved Budgeting: Provides more realistic contingency planning by estimating potential costs associated with risks.
  • Enhanced Decision-Making: Stakeholders can make data-backed decisions on risk mitigation strategies versus risk
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What are the assumptions of ordinary least squares (OLS) in econometrics
Financial Mathematics Topics

What are the assumptions of ordinary least squares (OLS) in econometrics

- by Nathan Robinson

Ordinary Least Squares (OLS) is the simplest and most widely used estimation technique in econometrics. It provides the Best Linear Unbiased Estimators (BLUE) for the parameters in a linear regression model, provided a specific set of assumptions, known as the Classical Linear Model (CLM) assumptions, are met.

When these assumptions hold, the OLS estimates are considered reliable and trustworthy for statistical inference. When they are violated, the results can be misleading, biased, or inefficient.

Here are the nine core assumptions of OLS, grouped by their impact on your model.

Group 1: Assumptions for Linearity and Data Quality

These assumptions ensure the model is correctly specified and the data is appropriate.

1. Linearity in Parameters

The relationship between the dependent variable and the independent variables must be linear in the parameters.

  • Formal Statement:
  • Implication: This does not mean the variables themselves must be linear; you can use transformations like
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Retail Merchandising Math
Financial Mathematics Topics

Retail Merchandising Math

- by Nathan Robinson

When you paid consideration in college you discovered that business mathematics entails terrific numerous various capabilities: appraising and interpreting tables, charts, and graphs; determining specific discounts and markups; operating out problems associated with percentage, ratio, and proportion; ascertaining unit prices, complete charges, scaled expenditures for receipts; budgets; funding; credit; charges examined against cash; recognizing income, payroll taxes, and deductions; analyzing federal revenue tax yearly reports; comparing distinctive financial investment approaches; knowing taxes such as sales, utility, home too as other several charges; assessments of insurance programs; awareness of charges of manufacturing, and assessing business efficiency. All of which I’m sure unless you were an accounting main, had restricted appeal.

But now that you are around the job you could nicely find that each and appreciation from the general structure too as an understanding of the fundamental calculations involved is expected. When computers are, without query, capable to do many of …

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Financial Mathematics Topics

Develop Interest By Understanding The Need For Mathematical Thinking

- by Nathan Robinson
Develop Interest By Understanding The Need For Mathematical Thinking

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As a Math Tutor in Hong Kong, one of the most frequent remarks made by students and adults alike is ‘When and why am I ever going to use this sort of mathematics?’. The first step towards understanding this is to think about how science and technology has progressed and transformed the way we live, especially during the last century. The applications of math is probably the most convincing reason for most people. Yet, math isn’t just a tool employed by science. It’s also a subject in and of itself. Although it can be abstract, it’s also precise.

The Need for Mathematical Thinking

Granted, the majority of people won’t ever use or need anything beyond arithmetic. Mathematics started a long time ago. Many historical civilizations including Greece, China, Egypt and India explored the nature of mathematics and found applications for them.

For example, Pascal’s Triangle was discovered in …

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