study guides for every class

that actually explain what's on your next test

R statistical analysis tool

from class:

Principles of Finance

Definition

The R Statistical Analysis Tool is an open-source software environment used for statistical computing and graphics. It is widely used in finance for data analysis, modeling, and visualization.

congrats on reading the definition of R statistical analysis tool. now let's actually learn it.

ok, let's learn stuff

5 Must Know Facts For Your Next Test

  1. R is highly extensible with a vast repository of packages available via CRAN (Comprehensive R Archive Network).
  2. R is effective in handling and manipulating large datasets, making it suitable for financial analysis.
  3. It includes a wide variety of statistical techniques such as linear and nonlinear modeling, time-series analysis, classification, clustering, etc.
  4. R integrates well with other data processing tools like SQL databases and Excel.
  5. R provides advanced graphical capabilities for visualizing financial data through various types of plots and charts.

Review Questions

  • What are some key features that make R suitable for financial data analysis?
  • How does R's extensibility benefit financial analysts?
  • Name two types of statistical techniques that can be performed using R.

"R statistical analysis tool" also found in:

© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
Glossary
Guides