Search research articles

ABOUT JoVE

Overview Leadership Blog JoVE Help Center

AUTHORS

Publishing Process Editorial Board Scope & Policies Peer Review FAQ Submit

LIBRARIANS

Testimonials Subscriptions Access Resources Library Advisory Board FAQ

RESEARCH

JoVE Journal Methods Collections JoVE Encyclopedia of Experiments Archive

EDUCATION

JoVE Core JoVE Business JoVE Science Education JoVE Lab Manual Faculty Resource Center Faculty Site

Terms & Conditions of Use

Related Concept Videos

Expected Frequencies in Goodness-of-Fit Tests

Expected Frequencies in Goodness-of-Fit Tests

A goodness-of-fit test is conducted to determine whether the observed frequency values are statistically similar to the frequencies expected for the dataset. Suppose the expected frequencies for a dataset are equal such as when predicting the frequency of any number appearing when casting a die. In that case, the expected frequency is the ratio of the total number of observations (n) to the number of categories (k).

Standard Deviation

Standard Deviation

The most commonly used measure of variation is the standard deviation. It is a numerical value measuring how far data values are from their mean. The standard deviation value is small when the data are concentrated close to the mean, exhibiting slight variation or spread. The standard deviation value is never negative, it is either positive or zero. The standard deviation is larger when the data values are more spread out from the mean, which means the data values are exhibiting more variation.

Expected Value

Expected Value

The expected value is known as the "long-term" average or mean. This means that over the long term of experimenting over and over, you would expect this average. The expected average is represented by the symbol μ. It is calculated as follows:

Equity Theory

Equity Theory

Equity theory explains how our sense of fairness influences the dynamics of close relationships. Rooted in social psychology, the theory posits that individuals evaluate fairness by comparing the ratio of their contributions to the rewards they receive. Relationship satisfaction is highest when these ratios are perceived as balanced between partners, promoting mutual reciprocity and a sense of justice.Equity vs. Equality in RelationshipsEquity is distinct from equality. Fairness does not...

Entropy

Entropy

Salt particles that have dissolved in water never spontaneously come back together in solution to reform solid particles. Moreover, a gas that has expanded in a vacuum remains dispersed and never spontaneously reassembles. The unidirectional nature of these phenomena is the result of a thermodynamic state function called entropy (S). Entropy is the measure of the extent to which the energy is dispersed throughout a system, or in other words, it is proportional to the degree of disorder of a...

Entropy

Entropy

The first law of thermodynamics is quantitatively formulated via an equation relating the internal energy of a system, the heat exchanged by it, and the work done on it. A quantitative formulation of the second law of thermodynamics leads to defining a state function, the entropy.
When an ideal gas expands isothermally, the disorder in the gas increases. From the molecular perspective, the gas molecules have more volume to move around in.
Consider an infinitesimal step in the expansion, which...

You might also read

Related Articles

Articles linked to this work by shared authors, journal, and citation graph.

Sort by

Same author

Wastewater-based surveillance for seasonal respiratory viruses provides a one-week lead to clinical cases and hospital admissions.

The Science of the total environment·2026

Same author

GL-V9 disrupts the mitochondrial homeostasis and triggers the integrated stress response by promoting the binding of cytosolic MDM2 with NDUFS1 in colorectal cancer.

Journal of advanced research·2026

Same author

Gender Differences in Aversion to Social Comparison Feedback.

Personality & social psychology bulletin·2026

Same author

Moral deliberation reduces people's intentions to share headlines they recognize as "fake news".

Journal of experimental psychology. General·2026

Same author

Correction: The future of digital donation crowdfunding.

PloS one·2025

Same author

Consistent trends from different methods for monitoring SARS-CoV-2 in urban wastewater during a 29-month longitudinal study.

Frontiers in microbiology·2025

Search research articles

Related Experiment Video

Updated: Nov 7, 2025

Optimization of Processing of Tiebangchui with Highland Barley Wine Based on the Box-Behnken Design Combined with the Entropy Method

Optimization of Processing of Tiebangchui with Highland Barley Wine Based on the Box-Behnken Design Combined with the Entropy Method

Published on: May 19, 2023

Performance of Portfolios Based on the Expected Utility-Entropy Fund Rating Approach.

Daniel Chiew¹, Judy Qiu¹, Sirimon Treepongkaruna¹

¹Business School, The University of Western Australia, Perth 6009, Australia.

Entropy (Basel, Switzerland)

|April 30, 2021

Summary

This summary is machine-generated.

This study introduces an expected utility-entropy (EU-E) decision model for fund rating, outperforming traditional Morningstar ratings in portfolio selection. Portfolios built with EU-E rated funds demonstrated superior performance, showing robustness across various rebalancing intervals.

Keywords:

expected utility–entropy fund rating performance portfolio risk

More Related Videos

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Published on: September 19, 2012

A Workflow for Lipid Nanoparticle LNP Formulation Optimization using Designed Mixture-Process Experiments and Self-Validated Ensemble Models SVEM

A Workflow for Lipid Nanoparticle LNP Formulation Optimization using Designed Mixture-Process Experiments and Self-Validated Ensemble Models SVEM

Published on: August 18, 2023

Related Experiment Videos

Last Updated: Nov 7, 2025

Optimization of Processing of Tiebangchui with Highland Barley Wine Based on the Box-Behnken Design Combined with the Entropy Method

Optimization of Processing of Tiebangchui with Highland Barley Wine Based on the Box-Behnken Design Combined with the Entropy Method

Published on: May 19, 2023

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Measuring the Subjective Value of Risky and Ambiguous Options using Experimental Economics and Functional MRI Methods

Published on: September 19, 2012

A Workflow for Lipid Nanoparticle LNP Formulation Optimization using Designed Mixture-Process Experiments and Self-Validated Ensemble Models SVEM

A Workflow for Lipid Nanoparticle LNP Formulation Optimization using Designed Mixture-Process Experiments and Self-Validated Ensemble Models SVEM

Published on: August 18, 2023

Area of Science:

Decision Theory
Financial Portfolio Management
Quantitative Finance

Background:

The expected utility-entropy (EU-E) decision model was proposed by Yang and Qiu.
Luce et al. developed a similar numerical representation for risky choices.
A novel fund rating approach was recently established, integrating the EU-E model with Morningstar ratings.

Purpose of the Study:

To apply the EU-E based fund rating approach to US mutual funds.
To construct investment portfolios using top-rated funds identified by the EU-E model.
To evaluate and compare the performance of EU-E based ratings against Morningstar ratings in portfolio selection.

Main Methods:

Application of the EU-E decision model to rate US mutual funds.
Portfolio construction utilizing funds with the highest EU-E ratings.
Comparative performance analysis of portfolios derived from EU-E ratings versus Morningstar ratings.

Main Results:

Portfolios constructed using EU-E model ratings with moderate tradeoff coefficients exhibited superior performance compared to those using Morningstar ratings.
The enhanced performance of EU-E based portfolios was consistent across different portfolio rebalancing intervals.

Conclusions:

The EU-E decision model provides a more effective framework for fund rating and portfolio selection than Morningstar ratings.
The findings suggest that incorporating entropy into expected utility calculations can lead to improved investment strategies.