f(Newton)

12 Pages Posted: 8 Dec 2012 Last revised: 16 Jul 2017

See all articles by Fred Viole

Fred Viole

OVVO Financial Systems; Fordham University

David N. Nawrocki

Villanova University - Department of Finance

Date Written: December 7, 2012

Abstract

We define the relationship between integration and partial moments through the integral mean value theorem. The area of the function derived through both methods share an asymptote, allowing for an empirical definition of the area. This is important in that we are no longer limited to known functions and do not have to resign ourselves to goodness of fit tests to define f(x). Our empirical method avoids the pitfalls associated with a truly heterogeneous population such as nonstationarity and estimation error of the parameters. Our ensuing definition of the asymptotic properties of partial moments to the area of a given function enables a wide array of equivalent comparative analysis to linear and nonlinear correlation analysis and calculating cumulative distribution functions for both discrete and continuous variables.

Keywords: Lebesgue, partial moments, continuous distribution,asymptotic

JEL Classification: C14, C60

Suggested Citation

Viole, Fred and Nawrocki, David N., f(Newton) (December 7, 2012). Available at SSRN: https://ssrn.com/abstract=2186471 or http://dx.doi.org/10.2139/ssrn.2186471

Fred Viole (Contact Author)

OVVO Financial Systems ( email )

NJ
United States

Fordham University ( email )

113 West 60th Street
New York, NY 10023
United States

David N. Nawrocki

Villanova University - Department of Finance ( email )

800 Lancaster Avenue
Villanova, PA 19085-1678
United States
610-519-4323 (Phone)
610-519-6881 (Fax)

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