Monday, December 24, 2007

Categorization Of Multidimensional Scaling

Multidimensional scaling (MDS) is a set of related statistical techniques often used in data visualization for exploring similarities or dissimilarities in data. MDS is a special case of ordination. An MDS algorithm starts with a matrix of item-item similarities, and then assigns a location of each item in a low-dimensional space, suitable for graphing or 3D visualization.
MDS algorithms fall into a taxonomy, depending on the meaning of the input matrix:
Classical multidimensional scaling
Also known as Torgerson Scaling or Torgerson-Gower scaling – takes an input matrix giving dissimilarities between pairs of items and outputs a coordinate matrix whose configuration minimizes a loss function called strain.
Metric multidimensional scaling
A superset of classical MDS that generalizes the optimisation procedure to a variety of loss functions and input matrices of known distances with weights and so on. A useful loss function in this context is called stress which is often minimized using a procedure called Stress Majorization.
Generalized multidimensional scaling (GMDS)
A superset of metric MDS that allows for the target distances to be non-Euclidean.
Non-metric multidimensional scalingIn contrast to metric MDS, non-metric MDS both finds a non-parametric monotonic relationship between the dissimilarities in the item-item matrix and the Euclidean distance between items, and the location of each item in the low-dimensional space. The relationship is typically found using isotonic regression.

Friday, December 21, 2007

Private Equity Investment Types

The Private Equity sector is broadly defined as investing in a company through a negotiated process. Investments typically involve a transformational, value-added, active management strategy.
Private Equity investments can be divided into the following categories:
  • Venture capital: an investment to create a new company, or expand a smaller company that has undeveloped or developing revenues
  • Buy-out: acquisition of a significant portion or a majority control in a more mature company. The acquisition normally entails a change of ownership
  • Special situation: investments in a distressed company, or a company where value can be unlocked as a result of a one-time opportunity
Private equity firms generally receive a return on their investments through one of three ways: an IPO, a sale or merger of the company they control, or a recapitalization. Unlisted securities may be sold directly to investors by the company (called a private offering) or to a private equity fund, which pools contributions from smaller investors to create a capital pool.
Considerations for investing in private equity funds relative to other forms of investment include:
  • Substantial entry costs, with most private equity funds requiring significant initial investment plus further investment for the first few years of the fund.
  • Investments in limited partnership interests are referred to as "illiquid" investments which should earn a premium over traditional securities, such as stocks and bonds. Once invested, it is very difficult to gain access to your money as it is locked-up in long-term investments which can last for as long as twelve years. Distributions are made only as investments are converted to cash; limited partners typically have no right to demand that sales be made.
  • If a private equity firm can't find good investment opportunities, it will not draw on an investor's commitment. Given the risks associated with private equity investments, an investor can lose all of its investment if the fund invests in failing companies. The risk of loss of capital is typically higher in venture capital funds, which invest in companies during the earliest phases of their development, and lower in mezzanine capital funds, which provide interim investments to companies which have already proven their viability but have yet to raise money from public markets.
  • Consistent with the risks outlined above, private equity can provide high returns, with the best private equity managers significantly outperforming the public markets.
For the above mentioned reasons, private equity fund investment is for those who can afford to have their capital locked in for long periods of time and who are able to risk losing significant amounts of money. This is balanced by the potential benefits of annual returns which range up to 30% for successful funds.

Wednesday, December 19, 2007

Different Types Of Income

There are three different types of incomes that one can get. Linear, Residual and Multiplex Incomes of earnings. Let’s see in brief:
  • Linear Income - here you exchange your time for money. The more money you want to earn, the more time you need to give up. Examples include salaried workers. If you stop working, your income also stops.
  • Residual Income - here you do the work once and get paid for e.g. by earning royalties. Examples include writers, singers.
  • Multiplex Income - this is income earned by leveraging. Consider the McDonald franchise concept. Ray Kroc did not become a millionaire by selling hamburgers. He had independent business owners who bought a franchise from him. They sell the hamburgers for him and each pay him a franchise fee and also a percentage of sales. What Ray has is a proven system. A system that can be duplicated. Multiplex income is based on the concept of “the power of duplication”. Examples include franchising & Network Marketing.

Friday, December 14, 2007

Affordable High Risk Medical Insurance

Finding affordable high-risk medical insurance is almost as difficult these days as finding a needle in a proverbial haystack. However, whether you are looking for affordable traditional medical insurance or you're thinking about opening a Health Savings Account, there are steps you can take that will reduce your monthly premium. Paying your premiums automatically from your bank account will save you money.

Monday, December 10, 2007

Things to Ask in Apartment Search

I have noticed some important things that need to be asked to your landlord before renting your apartment. They are crucial because their ignorance may later make you feel repent. This list of points is documented by me when I am searching for one Miami apartment. I hope these points will make your apartment search easy. The list goes as follows:
  • Size of the apartment, Number of rooms, number of bedrooms, number of bathrooms, size of the kitchen, ventilation, parking area size, windows and doors installation.
  • Range of the apartment rent in the nearby location. Check whether it is in the limits of your affordability.
  • See what all the amenities, utilities, features it has up to your requirements. Ask if you can have, if you need them, with in your limited budget.
  • Any brokerage or application fee is minimal in case of hiring any apartment search broker.
  • Make sure if you can have your pets in your apartment. Some apartments will have some restrictions and some will not allow pets.
  • Inquire and agree on the first month and last months rent. Before that make sure you have properly understood about the security deposit terms and conditions.
  • Get to know about the nearest public transportation, recreation centers, parks, malls, etc.

Related links:
Barbados luxury villas