Bootstrapping

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Bootstrapping

Creating a theoretical spot rate curve using one yield projection as the basis for the yield of the next maturity. Bootstrapping follows the work of Efron. It involves a Monte Carlo approach.

Bootstrap

1. To start a company with personal finances rather than through loans or venture capital. This is obviously a large risk to the entrepreneur as he/she has no recourse should the business fail. On the other hand, it allows the entrepreneur to maintain control of the business and has the potential to be very successful. It is famously said that Ross Perot established Electronic Data Systems with $1,000 in personal savings; he maintained complete control of the company until its IPO six years later. This is an example of bootstrapping. See also: Seed money.

2. To calculate the yield curve on a zero-coupon Treasury bill. Because the U.S. Treasury does not issue new T-bills constantly, bootstrapping is used to create a yield curve by filling in the missing yields on the T-bills.

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The advantage of bootstrapping against other analytical methods is its great simplicity it is straightforward to apply the bootstrap to derive estimates of standard errors and confidence intervals for complex estimators of complex parameters of the distribution, such as percentile points, proportions, odds ratio, and correlation coefficients (Efron 1982).

Forecasting bank stock market prices with a Hybrid method: the case of Alpha Bank/Vertybiniu popieriu kainu prognozavimas Hibridiniu metodu: Alpha Bank pavyzdys

Left censoring and bootstrapping of upper percentiles

Estimating upper percentiles of strand thickness for oriented strand board

Less educated respondents used more inventory-focused bootstrapping than college-educated entrepreneurs (significant at 1%).

The relationship between owner characteristics and use of bootstrap financing methods

These findings suggest that dialectical bootstrapping may be an effective strategy in helping us come up with better answers to many types of problems.

How to improve individual decision-making

In this section we describe the general empirical hedonic model that underlies our research, and the bootstrapping approach we use to evaluate the model for a large data set.

Estimating the effect of air quality: spatial versus traditional hedonic price models

This paper discusses methods which broadly address bootstrapping options such as bootstrapping product development, bootstrapping business development, bootstrapping to minimize the need for (outside) capital financing, and bootstrapping to minimize the need for capital; these have been previously identified by Freear, Sohl, and Wetzel (1995) and Winborg and Landstrom (2001).

Bootstrapping business start-ups: entrepreneurship literature, textbooks, and teaching practices versus current business practices?

Instead of using the bootstrapping technique one could get confidence intervals around the forecast by using the conventional method.

Probability distribution of electricity demand forecast for the city of Karachi

Instead of being perceived as a pie-in-the-sky techie, by bootstrapping you can position yourself as someone who knows how to develop ideas that will be embraced by management.

How bootstrapping will expand your area of influence

The objective of the research was to estimate the lower percentiles of the material properties using nonparametric bootstrapping methods.

Bootstrap confidence intervals for percentiles of reliability data for wood-plastic composites

The Use of Bootstrapping by Women Entrepreneurs in Positioning for Growth" is coauthored by Candida Brush and Patricia Greene, Babson College; Nancy M.

Study: Women Entrepreneurs Maximize Creative Financing to Grow their Firms

Support for individual clades was determined by nonparametric bootstrapping with 1,000 replicates.

Genetic divergence and dispersal of yellow fever virus, Brazil

Bean catalog, it occurred to me that the company is an ideal example of how bootstrapping works.