Continuous Probability Notes Essay

Continuous Probability Notes Essay Continuous Probability Notes Essay Chapter 6: Continuous Probability Distributions Study Modules (PPT presentations): Introduction to Continuous Probability Distributions Normal Probability Distribution Discrete Distributions Excel Tutorial: Computing Normal Probabilities Java Applet: Normal Distribution Areas Normal Approximation to Binomial Probabilities Continuous Random Variables: A continuous random variable can assume ____any value_______________ in an interval on the real line or in a collection of intervals. It is not possible to talk about the probability of the random variable assuming a __specific___________ (P(x=X)=0) value. Instead, we talk about the probability of the random variable assuming a value within a given _____interval_____________________. The probability of the random variable assuming a value within some given interval from x1 to x2 is defined to be the ___area under the graph_______ of the ___probability density function__ between x1 and x2. Three continuous Random Variables will be discussed in this chapter: Uniform Probability Distribution, Normal Probability Distribution, and Exponential Probability Distribution. I. Uniform Probability Distribution A random variable is uniformly distributed whenever the ____probability__________ is proportional to the interval’s length. The uniform probability ___________________________ is: where: a = smallest value the variable can assume b = largest value the variable can assume Expected Value of x: E(x) = ______________________________ Variance of x: Var(x) = ______________________________ Example: Slater’s Buffet: Slater customers are charged for the amount of salad they take. Sampling suggests that the amount of salad taken is uniformly distributed between 5 ounces and 15 ounces. Therefore: The amount salad customer taken is an uniform distributed random variable with density function: f(x) = 1/10, for 5 ≠¤ x ≠¤ 15 = 0, elsewhere Where: x= salad plate filling weight Expected Value of x: E(x) = (a+b)/2 = __ µ (mean)_________________ Variance of x: Var(x) = (b-a)2/12 = __ ÏÆ'_(standard deviation)______________ Area as a Measure of Probability: The area under the graph of f(x) and probability are identical. This is valid for all continuous random variables. The probability that x takes on a value between some lower value x1 and some higher value x2 can be found by computing the area under the graph of f(x) over the interval from x1 to x2. II. Normal Probability Distribution The normal probability distribution is the most important distribution for describing a continuous random variable. It is widely used in statistical inference. It has been used in a wide variety of applications including: Heights of people Test scores Rainfall amounts Scientific measurements Abraham de Moivre, a French mathematician, published The Doctrine of Chances in 1733. He derived the normal distribution. Standard Normal Probability Distribution: A random variable having a normal distribution with a mean of _____ and a standard deviation of ____ is said to have a standard normal probability distribution. Converting to the Standard Normal Distribution: z = ____ (X - ÃŽ ¼) / ÏÆ' ______________________________________ We can think of z as a measure of the number of standard deviations x is from  µ. Reference: Using Excel to Computer Standard Normal Probabilities (p.266) Example: Pep Zone Pep Zone sells auto parts and supplies including a popular multi-grade motor oil. When the stock of

By Looking Closely At Language Content Style

By Looking Closely At Language, Content, Style Show How? Fat? Can Be Considered A Typical Carve Sto Essay, Research Paper ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? When replying this inquiry one must first see what a typical Raymond Carve narrative is. After reading several of his other short narratives you can see a pattern development. His minimalist manner creates a sense of withdrawal from the narrative and its characters, nevertheless at the same clip he is still able to take you through a scope of emotions. A typical Carver narrative surely involves conversational and easy to understand linguistic communication. However at the base and beneath this are really intricate and elaborate narrative lines that frequently hold implicit in concealed messages, these messages are the readers occupation to bring out. The simpleness of Raymond Carver # 8217 ; s characters makes them complex. Though this is an dry statement as sarcasm is portion of Raymond Carver? s authorship. The individualities of his characters are simple and ordinary, but the sarcasm of the narratives makes them unusual. Most of Carver # 8217 ; s characters are similar: alone personalities without the ability to show themselves, fighting with the troubles of the day-to-day life and traveling from occupation to occupation. There is a bound to what they can bear, and even an undistinguished event can oppress their lives. Their ordinary lives all of a sudden seam non so ordinary ; they become strange. The scenes are semi-industrial American towns that make the reader depressed and dying. The secret plans of his narratives are besides comparable: the action begins with ordinary lives, which somehow prostration into darkness, depression and terror. The universe portrayed by the writer is without faith, political relations, civilization or society. The reader is left with assorted feelings: desperation and gratefulness. Our lives may be bad, but compared to those described in his narratives they seem heavenly. ? ? ? ? ? ? ? ? ? ? ? If you compare? Fat? to this analogy so one can surely see similarities. Language wise, this narrative is simple with no complex metaphors etc, Carver does non necessitate these to make the image he wants. His simple authorship manner still can convey you through a scope of emotions. At the beginning of the narrative I found it humourous, ? This adult male is the fattest individual I have of all time seen. ? This description of the adult male can be interpreted as entertaining. However as the narrative develops, this facet of temper shortly alterations into a more serious affair as one begins to feel understanding for the adult male. The elaborate description of what he eats, how he chows an vitamin D people? s comments to his weight filled me with great compassion, ? He? s truly a fatty. ? The linguistic communication used by the characters to depict the adult male can be harsh and cruel reenforcing your understanding for him. In footings of manner the usage of the first individual narrative in this narrative allows Carver to step back and have less of an interpretative influence. A first individual narrative does non let Carver to hold such control over the characters. The gives a greater sense of pragmatism. Many of George washington carvers narratives are focused on one character depicting events. In? Fat? it is based around this adult females giving her perceptual experience of proceedings, ? I say and a feeling comes over me? The adult females does non depict what this feeling is merely that she has one. This adds a turn to the narrative as the adult females is non merely concerned by this mans weight but by something else. It is our occupation as the reader to dissect this. Besides at the beginning of the narrative it is a really laid back and relaxed manner, nevertheless as the narrative progresses your emotions start to come up and you are seeking to calculate out what is truly traveling on. This is Carver? manner being able to subletely toss the whole narrative over conveying up many surprises along the manner. As with many other of his short narratives, Carver will describe something so far and merely at the point where everything is about to be exposed he stops, go forthing the remainder to our imaginativeness. At the terminal of a Carver narrative you feel baffled as such a simple event can be turned around into something life altering for a character. If one looks at the general content of the narrative so you see several analogues emerging with his other narratives. ? Fat? starts off with an ordinary individual, with an ordinary occupation in a ordinary state of affairs. However Carver? s glare is how he converts these apparently dull state of affairss into a life altering experience for the character. If one looks at? Fat? so the stoping is a complete bewilderment for the reader, ? My life is traveling to alter. I feel it. ? In? Fat? there is no existent narrative line as with his other narratives, but its stoping exemplifies Carver? s minimalist manner, maintaining everything simple on the surface, but underneath you can see that something else is traveling on. In decision? Fat? has adult male similarities with a typical Carver narrative. With its minimalist manner and dull ordinary people populating their lives, nevertheless these lives can be changed dramatically by one individual or one event. As a consequence the lives can travel into depression or make the antonym and flourish.

Chapters Questions Essay Example | Topics and Well Written Essays - 250 words

Chapters Questions - Essay Example For the growth stage, the strategic alternatives are market development, product development, penetration, vertical integration, and related diversification. For the maturity stage, the strategic alternatives are market development, product development, penetration, enhancement, status quo, retrenchment, divestiture, and unrelated diversification. For the decline stage, the strategic alternatives are divestiture, liquidation, harvesting, and unrelated diversification. Public health and not-for-profit organizations should set priorities for their programs because they have more limited financial resources compared to for-profit organizations that focus on and can generate large profits, so the former must set priorities that will result to efficient resource-allocation decisions. 2) Explain the difference between pre-service, point-of service, and after -service activities. What elements are central to each? Provide an example of how an organization might create a competitive advantage in each of these areas? Pre-service activities use market research to know more about the customers and marketing research to determine the customers’ reactions to the organization’s marketing programs. Point-of-service concerns patient care and service delivery. After-service activities consist of marketing and clinical follow-up and follow-on activities. The elements that are central to pre-service activities are market and marketing research, branding, market segmentation, pricing, distribution, and promotion; for point-of-service, clinical operations and marketing; and for after-service activities, follow-up, billing, and follow-on. An organization can create competitive advantages in each area by doing the following: in pre-service, by periodically conducting focus group discussions to determine market needs and preferences; in point-of-service, by monitoring clinical and organizational outcomes and emphasizing continued learning; and

Policy Issues in Mental Health Essay Example | Topics and Well Written Essays - 1250 words

Policy Issues in Mental Health - Essay Example One such issue is the mental needs of baby boomers. This is because this generation of the American population offers a Unique challenge to the American medical system, in that the system is not adequately prepared to address the mental health needs of this demographic. This can, however, be remedied with the appropriate policy implementation to ensure that Medicare is in a position to adequately contain the mental health needs of the baby boomer generation. This is because the members of these demographic are likely to suffer from mental problems like depression leading to suicides, as they advance in age (MedlinePlus, 2009). Although mental health is being recognized as a health problem in America, the Medicare system needs policy implementations, ad hoc the needs of the baby boomer generations mental health needs. Background After the WW2, The demographic of the American population that comprised of young adults had a symbolic significance to the population as the face of optimism and the nations driving force. In the modern times, however, as this generation has advanced age wise, there has been growing concerns concerning their health. This is because there are fears that the health care system is inadequate to handle the mental needs of this generation, to ensure they live healthily. The society has been slow to recognize mental health as an illness, and this has made the field lag behind as compared to the other areas in mainstream healthcare. This shortfall has been made apparent by the challenges in mental healthcare for the baby boomers. The healthcare policies that have been introduced recently have highlighted the shortage in terms of carte providers of geriatric mental health cases. Statistics on the issue collected by the Center for Disease Control and Prevention (CDC) depicted an increase in the suicide rates by 20%, among the age demographic of between 45 to 54 years, in the period between 1999 and 2005 (Conger, 2009). Though exploration into th e matter has not yielded a definite cause for this increase, the most logical hypothesis has been cited as being due to the depression affecting this demographic. Use of prescription drugs and hormone replacements to counter menopause have been proposed as possible causes (Chopvisky, 2011). Other experts have varied citing it simply portrayed the natural receding of the population numbers. White Women have a slightly higher increase than their male compatriots, with a figure of 3.9 percent increase being recorded. The increase in suicide rates was also evident across the board with minority groups also recording an upward trend in suicide cases. The complexity of the health needs with relation to their mental wellbeing is made critical by the actuality that this demographic comprises of 78 million individuals. The gravity of the situation is further reiterated with the fact that 10 million baby boomer are likely to suffer from Alzheimer cases. There are also indications that cases o f dementia have a strong prevalence among the group (Kapes, 2006). The society has tried to ensure that this generation lives comfortably, and there have been initiatives concerning this in various areas including social security and geriatric care, but there has been a shortcoming in

Wilderness: History and Value Essay -- Nature Philosophy Papers

Wilderness: History and Value History From the very beginning of this nation's history, wilderness has been a fundamental ingredient. The first European settlers found and battled against it upon their arrival. The western explorers and wagon trains sought to wrestle farmland from the wilderness's grip to build cities, farms and homes. It was not until the reality of its finite availability, that it was viewed as anything other than an opponent and menace. These changing attitudes began a new battle for preservation and protection of the wilderness that remained. The nation's attitude transformation was testimony to a new focus and value for wilderness. This new disposition declared that the preservation and maintenance of wilderness is instrumental to our own emotional, spiritual and biological survival. The first European settlers began an extensive nation wide war on wilderness upon their arrival on the eastern shore. The war continued for many years and set the tone for America's relationship with its wilderness lands. Many of the nation's first European arrivals brought with them very Puritanical views regarding the appropriateness of order and disorder as well as fundamental Christian views (Kropf, 1997). In their minds, the unsettled and unestablished lands of the New World symbolized lack of order and therefore the absence of God. Along with disorderly lands there existed native inhabitants who, because they had not subdued the land-putting it to strict agricultural use-were innately inferior. All these attributes assigned to the Indians and the wilderness led the early settlers to firmly believe that the wilderness was the dwelling place of Satan. As God fearing Christians, their greatest calling was the elim... ...nd humanity will suffer. Furthermore, the contents of this continent which have shaped and influenced this nation will be forever lost. Bibliography Brower, David. (1996). Let the Mountains Talk, Let the Rivers Run. San Fransisco: Harper Collins Publishers. Drabelle, Dennis. (1984, Summer). Feral Explorations. Wilderness, pp.24-26. Hendee, John C., Stankey, George H., & Lucas, Robert C. (1990). Wilderness Management. Golden: North American Press. Kropf, Jesse A., "Images of the Overland Trail and Manifest Destiny: A Distortion of Reality". History 369: Dan Flores, University of Montana. Spring 1997. Nash, Roderick. (1967). Wilderness and the American Mind. New Haven: Yale UP. Nash, Roderick. (1984, Summer). Path to Preservation. Wilderness, 5-11. Oelschlager, Max. (1991). The Idea of Wilderness. New Haven: Yale University Press.

Cheap Air Travels Gives Ordinary People the Freedom to Travel but Others Feel That Air Travel Adds to the World’s Environmental Problems

Block method outline I. Introduction Hook- Air travel has become a common transportation among most of the people in this world. Background information- Approximately 1,423,500,000 people travels by airplane per year and 3,900,000 passengers travel by flight every day. What the writer intends to do- Discuss why huge number of people using air travel to travel. Body A. Paragraph 1 1. Topic sentences 1 * Many of people prefer to choose travel by cheap air travel because of it amount. * Make this world more peace and harmony Government have funds to invest into basic fields in the country * Make someone more relaxed and release heavy pressure. 2. Supporting detail * Gives a person the chance to travel to places where he would like to visit with only a minimum amount. * Promote cultural exchange and mutual understanding and it will make this world a peaceful place to living in. * Visitors from other countries will increase tax revenues especially in those tourism-focused counties and gov ernment for that particular country will have more funds to invest. They may get relaxed and release heavy pressure from life or work when they can travel to the place that they love. B. Paragraph 2 1. Topic sentence 2 * Low-cost air travels have been subject to criticism by governments and regulators. * Global environmental problems. 2. Supporting detail * It is because aircraft are one of the major sources of greenhouse gases that can cause air pollution. * Air travel has been estimated to contribute between 3-30% of global warming. Study conducted by Mayer Hillman, Town & Country Planning magazine, they estimated that a ingle transatlantic return flight emits almost half the CO2 emissions. C. Paragraph 3 1. Topic sentence 3 * Everyone should have the opportunity to travel by air. 2. Supporting detail * Airplane is not the biggest contributor to climate change so far. * Many countries already have carbon taxes or levies included in the price of the airline ticket or aviation fuel. II. Conclusion Restatement- Advantages of cheap airfare outweigh its disadvantages, in terms of boosting cultural understanding and improving living standard.Prediction- Solved with the technology development such as discovery of new environmental friendly fuels. Reference Carleton , Ryan. Environmental impact of aviation. 2002. http://en. wikipedia. org/wiki/Environmental_impact_of_aviation (accessed March 4, 2013). Karcher and Fahey, . â€Å"What's wrong with air transport. † 24. (1997): 389-392. http://pages. uoregon. edu/recycle/caR2. htm (accessed March 4, 2013). CHEAP AIR TRAVELS GIVES ORDINARY PEOPLE THE FREEDOM TO TRAVEL BUT OTHERS FEEL THAT AIR TRAVEL ADDS TO THE WORLD’S ENVIRONMENTAL PROBLEMSYou may have many reasons for travels from one destination to another. Some of the reason could be a honeymoon trip with your love one, vacation with your family or even a business trip. And most of the people will choose the cheapest way to travel. Nowadays, air travel has become a common transportation among most of the people in this world. According to US travel association, there are approximately 1,423,500,000 people travels by airplane per year and about 3,900,000 passengers travel by flight every day.Because of the huge number of people using air travel to travel, many airlines all over the world offer cheap flight rates that people can afford. Many of people today prefer to choose travel by cheap air travel because it gives a person the chance to travel to places where he would like to visit with only a minimum amount. With little money spent for the flights ticket, travellers have more money saved to make his holiday more memorable and interesting. As we all know, that cheap air travel will make long-distance travel affordable for common people, which is an advantages for us.First of all, as there are more tourists take air travels to other countries, and they will learn and understand the culture the country they visit. In other words, i t will promote mutual understanding and cultural exchange between countries. As a result, the world will become more peaceful and we all can live in harmony. In addition to this, more visitors from other countries will stimulate local tourism, which would increase tax revenues especially in those tourism-focused counties. Therefore governments would have more funds to invest into basic fields, such as infrastructure, health insurance and education.Moreover, because people could afford travel, they may get relaxed and release heavy pressure from life or work when they travelling to the place that they love. However, low-cost air travels have been subject to criticism by governments and regulators all over the world. It is because aircraft are one of the major sources of greenhouse gases such as carbon dioxide (CO2), water vapour, and nitrogen oxides (NOx) that can cause air pollution. It is one of the cause that contributors to global environmental problems such as ozone depletion, c limate change and etc. Air travel has been estimated to contribute between 3-30% of global warming.A study conducted by Mayer Hillman, Town & Country Planning magazine in September 1996, they estimated that a single transatlantic return flight emits almost half the CO2 emissions. One recent study has estimated that, if the Airport grows as planned, CO2 emissions by 2020 could be greater than from all other transport in the regional catchment. And some agencies devoted to monitoring and protecting the environment said that the fares should be made more expensive and by doing that it will discourage people from using the air plane. In my opinion, everyone should have the chance to travel by air.Aircraft or airplane is not the biggest contributor to climate change so far. Many countries already have levies included in the price of the airline ticket or carbon taxes. This can offset the carbon produced during the flight. In conclusion, I personally believe that the advantages of cheap a irfare outweigh its disadvantages in terms of boosting cultural understanding and improving living standard. Although there are also some drawbacks but I believe they could be solved with the technology development such as discovery of new environmental friendly fuels, which can improvement of plane safety.

Data And Sampling Procedure Finance Essay - Free Essay Example

Sample details Pages: 7 Words: 2116 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Alternative Investment Market is a part of the London Stock Exchange market and it is designed for small and emerging companies to raise money from the public. The purpose of this report is to find and analyse the variables affect the non-financial companies IPO initial return in AIM between 2005 and 2010. Data and Sampling procedure Our main sources of information are the London Stock Exchange website, Perfect filings and Bloomberg, where we obtained all the necessary company information for analysis. First of all, we selected all the companies which started floating on the AIM between January 2005 and December 2010 from the London Stock Exchange Website, there were 1142 companies in total. After excluding all the financial-related companies and outliers which had exceptionally high initial returns, we then split up the remaining companies into two groups according to their listing year to observe the impact of financial crisis. We assumed the beginning of 2008 is the breaking point of the crisis. Secondly, we applied the stratified random sampling procedure to select companies respectively for each sample. We obtained two samples of 46 companies each, for which Sample 1 consists of companies that were listed before 2008 and Sample 2 consists of companies that listed after 2008. Don’t waste time! Our writers will create an original "Data And Sampling Procedure Finance Essay" essay for you Create order Descriptive statistics Regarding to our two samples, on average, companies from Sample 1 have raised 160.21m and companies from Sample 2 have raised 231.33m from the AIM where INTERNATIONAL FERRO METALS and SKIL PORTS LOGISTICS LTD are the highest-valued IPO deals within their sample which rose 800m and 760m respectively. In Sample 1, the offer price ranges between 2p and 503.7p and has a mean of 102.92p (See Appendix Table 1). On the other hand, the offer size of Sample 2 ranges between 0.6p and 13000p with a mean of 385.83p in Sample 2 (See Appendix Table 2). Lastly, Sample 1 has a standard deviation of 92.141 where that of Sample 2 is 1904.855, this huge difference is mainly due to the 13000p offer price issued by TGE MARINE AG. Methodology Formulae for Initial return: Firstly, we calculated the initial return (ri) for each company and this was computed by finding the difference between the closing price on the 7th day (Pi) after flotation and the offering price (OPi) and then divide it by the OPi. We then computed the average returns and the standard deviations of the initial returns for each sample. Formulae for Mean and Standard Deviation: (Note: n is the number of companies in each sample) In order to test whether the initial return of each sample is statistically different from zero, we performed a t-test (since the population variance is unknown) to check whether the mean initial return of each sample is different from zero, and the Null Hypothesis is expressed as follow: Furthermore, we applied another t-test to assess whether the initial returns of our 2 samples are statistically different. Since it is not reasonable to assume the population standard deviations of the two samples are equal and at the same time they are unknown, we apply the t statistic and the Hypothesis Test as follow: After the tests, we proceeded to the next stage where we analysed the factors and variables that would affect the initial returns of IPOs on the AIM. We performed a Linear Regression Analysis to explore the correlations between our chosen independent variables and the initial returns whilst taking into account of the additive and multiplicative dummy variables which would represent the qualitative variables[1]. Results Initial returns We tested each sample individually and we found that the mean of each sample is significantly different from zero (at 5% significant level) and in general the closing prices of the stocks after 7days are higher than the offer prices (See Appendix Table 3-5). This is reflected in the positive means of initial returns in the two samples. Hence, the companies in both samples are on average underpriced and when investors buy an IPO and hold it for a week, they can still obtain a minimum of 10% positive return. We also took another test to check whether the initial returns of the two samples are significantly different from each other. However, the result is insignificant (at 5% significant level) which reflects the 2008 financial crisis has no real impact on the initial returns of IPOs after 2008 (See Appendix Table 6). Since the test results show that the IPOs are underpriced, we identified several factors both quantitative and qualitative that might contribute to such outcome. Money left on the table Money left on the table is the difference between the first day closing price and the offer price and multiplied by the number of shares. It is the total amount of money investors are willing to pay over the original money required by the issuers. According to Ritter and Loughran (2004), if the investors are paying a premium over the issue price value on the first day of quoting, then it is expected that the short-term returns on the investment on those companies should be higher. Our results (coefficient 2.10e-09) (See Appendix Table 7) indicated that money left on the table has a positive impact on the return obtained by investor on a week after the issue date, and such low value is explained by Money left on the table usually is a big amount on money in comparison with percentage return registered on the initial return. It has a p-value of 0.000 at 5% significant level, hence it should be included in the model. Market value Market value takes into account the market capitalization and the debt outstanding in the company. Market value can be defined as the company size by proxy. Ibboston and Ritter (1994) found that in short run there is a negative impact on the return on the investments of new companies when the companies are larger and it is presumed that there is less uncertainty. According to our model results, Market value has the expected negative effect on initial return, with coefficient of -6.27e10 and it has a p-value of 0.000 (See Appendix Table 7) which is highly significant, so we are keeping the variable in the model. Market index return According to Boubaker (2011), market return over a period has a significant effect on the IPO listing. The market index acts as an investor behaviour sentiment indicator, so the return of stock on that day is highly correlated to the return on the index and therefore contributes to the underpricing or overpricing of IPOs. The linear regression gave the market index (AXX Index) return a p-value of 0.009 and a correlation coefficient of 1.57 (See Appendix Table 7) which we were able to prove that it is a significant independent variable that has a positive correlation with the initial return of IPO. Earnings before IPO Profit of a company is a very important factor for investor to consider as it represents the profitability of the firm and would ultimately affect investors expectation and return. As the study paper (Rhee, 2002) prepared for the OECD Round Table meeting shows there is a 30% difference in returns for IPOs between companies with positive and negative earnings. We took this as an independent variable and obtained the profit figures from every companys annual report in our samples. The result shows that the coefficient is and p-value of this variable is 0.347 (See Appendix Table 7), hence it is insignificant at the 5% significance level. We found no evidence for effects of earning management to initial returns for IPO. Number of shares traded after 7 days to number of shares issued The number of shares traded on the day has an impact on the return on share, Cornelli et al (2006) discovered that the total volume of transaction is positively correlated to investor behaviour which leads to higher prices, and hence higher initial returns. On the basis of our two samples extracted from the AIM, we are unable to establish these findings, since the regression result demonstrated the p-value of this variable is 0.145 which is higher than the 5% significant level (See Appendix Table 7). Therefore, there is no correlation between this factor and the initial return and it should not be incorporated into our model. Dummy Variables Regression with dummies and interactive dummies: We considered 3 models: Model 1(dummies only): Model 2(interactive dummies only): Model 3(both dummies and interactive dummies): (Note: The full outcome of regression analysis is shown in the Appendix Table 8-10) Monday effect dummy variable On the secondary market, there are several anomalies which are not following the Efficient Market Hypothesis (EMH) and capital asset pricing model (CAPM), such as the January effect (Haugen and Lakonishok, 1998; Ligon, 1997), the holiday effect (Ariel, 1990) and Monday effect (Jones and Ligon, 2009). IPOs offered on Monday are claimed to have higher initial return comparing to the other days in the week. We adopt this variable and take it as a dummy in our model where companies listed on Monday are denoted as 1 and companies listed on other days are 0. Research shows that calendar effect is not apparent in our samples with a p-value of 0.447 and a coefficient of 0.0238259. The result turns out to be insignificant at 5% significant level and it is inconsistent with the findings mentioned above. Sector dummy variable Ritter J.R. (1984) suggested that the returns are clustered according to sectors, therefore it is possible that sector variable can influence the return of the stock so we decided to use sector as a dummy variable. We used 1 for companies that belong to the energy and commodities industry and 0 for the rest. From the regression results, we were not able to identify a regular pattern that would justify the sector dummy variable having an impact on the initial returns. The sector dummy has a p-value of 0.211 which is not significant. Country dummy variable Demaskey and Olson (2006) explained that by disaggregating the return of ADRs according to the country of origin, there are significant differences in initial and aftermarket performances. We decided to use country origin of the company as a dummy variable and put 1 for UK companies and 0 for others. The p-value is 0.402 which suggests that the country variable is insignificant for the sample used. Underwriter ranking dummy variable Lowry et al (2010) believed that the actions (i.e. price revision) of underwriter would affect the pricing error of IPOs. They also mentioned that the higher the reputation of underwriters, the better the after-IPO service. In our model, rather than using Carter and Manaster (1990) underwriter ranking score as Lowry et al did, we chose another updated 2007 underwriter top 50 ranking from Bloomberg, and assumed the ranking of underwriter is constant from 2005 to 2010. We marked 1 for the dummy variable if the underwriter of IPO is in the list. As a result, it has a positive correlation coefficient and the p-value is 0.25 which is not significant. R2 increases from Model 1 to Model 3 because the more the variables, the higher the explanatory power of the model which implies that R2 is not a reasonable indicator. We then looked at the adjusted R2, and discovered that Model 1 gave the largest adjusted R2 (26.36%), which means putting aside the number of variables, model 1 best explained the dependent variable. Considering the independent variables are significant only in Model 1, we believe it is the best model among the three. Although the adjusted R2 of the original model and Model 1 are similar, we prefer the original model since none of the dummy variables in Model 1 is significant. Final insights This study aims at analysing the pricing of the IPOs on AIM and there are several points that we would like to address. Before conducting any tests, we anticipated that the financial crisis in 2008 would adversely affect the performance of the IPOs, but surprisingly the impact is negligible based on our hypothesis test afterwards. We tested the IPOs in our samples and proved that they were generally underpriced, and this is consistent with the past studies. We also investigated five quantitative variables and four qualitative variables and ultimately, we restricted and finalised our model with only three explanatory variables which are money left on the table, market value and market index return. Based on our analysis, these three variables have significant effects on the initial returns of IPOs and these are consistent with other empirical findings. However, for the factors that were assumed to be influential for underpricing such as earnings, the listing day, trading volume, sectors, country origin of the company and broker rankings are not significant determinants of the initial returns of the IPOs and this contradicts to the literatures we were referencing to. Finally, we suggest investors to invest in IPOs on the AIM when the following conditions are met: high market index return, companies with small ma rket value and big money left on the table. Appendix: Table 1 Table 2 Table 3Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10