Statistical Variability: Precision Is A Description of Accuracy Has Two Definitions

Accuracy refers to how close the measured values are to the actual correct value.
In a
business context having very accurate debt forecasts would mean that your forecasts are very
close to the correct value.
Precision refers to how close measured values are to each other. So a forecast model can be
very precise in that it always forecasts the debt payments within a small range of values, but
those values could be significantly different from the correct value.
Precision is a description of random errors, a measure of statistical variability.

Accuracy has two definitions:
1. More commonly, it is a description of systematic errors, a measure of statistical bias; as

these cause a difference between a result and a "true" value, ISO calls this trueness.
2. Alternatively, ISO defines accuracy as describing a combination of both types
of observational error above (random and systematic), so high accuracy requires both
high precision and high trueness.
In simplest terms, given a set of data points from a series of measurements, the set can be said
to be precise if the values are close to the average value of the quantity being measured, while
the set can be said to be accurate if the values are close to the true value of the quantity being
measured. The two concepts are independent of each other, so a particular set of data can be
said to be either accurate, or precise, or both, or neither.
Legitimacy - Acceptable or recognized as genuine, valid, or conforming to established
codes, customs, rules, or standards of conduct. See also lawful and legal.
Validity
1. General: Period for which an agreement, bid or offer, claim, document, etc., remains
in force.
2. Banking: Period for which a letter of credit remains effective and during which its
beneficiary must meet all its requirements.
3. Degree to which an instrument, selection process, statistical technique, or test

measures what it is supposed to measure.
Realibility
1. The ability of an apparatus, machine, or system to consistently perform its intended

or required function or mission, on demand and without degradation or failure.
2. Manufacturing: The probability of failure-free performance over an item's useful life,

or a specified timeframe, under specified environmental and duty-cycle conditions.
Often expressed as mean time between failures (MTBF) or reliability coefficient. Also
called quality over time. See also availability.
3. Consistency and validity of test results determined through statistical methods after
repeated trials.
Consistency
1. Logically ordered and/or following the same pattern. For example, a salesperson's
growth is usually consistent with his or her company's earnings.
2. Unchanging; steady. For example, a person that arrives exactly 5 minutes early to
work every day is consistently punctual or on-time.
3. Being in conformity with a set of rules, guidelines or policies. Television stations, for
example, need to be consistent with FCC regulations in order to be allowed to
broadcast.
Relevant
1. Accounting: Benefit or cost actually caused by, or expected to follow, a financial

event or transaction.
2. Law: Evidence or fact logically connected to or helpful in proving a material point.
Timelines
1. General: Line drawn on a suitable scale (days, months, years, centuries, eons) on
which key historical, planned, or projected events and periods are marked in the
sequence of their occurrence.
2. Project management: One of several horizontal lines in a job chart (each drawn at
specific points in time) to relate the completion of two or more jobs to the start of one or
more other jobs. First timeline is the start line and the last one is the finish line.
Completeness - The accomplishment of a given task measured against preset known

standards of accuracy, completeness, cost, and speed. In a contract, performance is
deemed to be the fulfillment of an obligation, in a manner that releases the performer
from all liabilities under the contract.
Comprehensiveness - completeness over a broad scope
Availability
1. General: Characteristic of a resource that is committable, operable, or usable upon

demand to perform its designated or required function. It is the aggregate of the
resource's accessibility, reliability, maintainability, serviceability, and securability.
2. Computing: Percentage of time a computer system is available for use. Formula:

Uptime x 100 (Uptime + Downtime).
3. Quality control: Ability of an item to perform its designated function, whenever

required.
Accessibility
1. Extent to which a consumer or user can obtain a good or service at the time it is
needed.
2. Ease with which a facility or location can be reached from other locations.
3. Ease of contact with a person or organization.
4. Authorization, opportunity, or right to access records or retrieve information from an

archive, computer system, or website.
Granularity - The level of detail considered in a model or decision making process. The
greater the granularity, the deeper the level of detail. Granularity is usually used to
characterize the scale or level of detail in a set of data.
Uniqueness - having no like or equal; unparalleled; incomparable

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Accuracy refers to how close the measured values are to the actual correct value.

Precision is a description of random errors, a measure of statistical variability.

1. More commonly, it is a description of systematic errors, a measure of statistical bias; as

3. Degree to which an instrument, selection process, statistical technique, or test

1. The ability of an apparatus, machine, or system to consistently perform its intended

2. Manufacturing: The probability of failure-free performance over an item's useful life,

1. Accounting: Benefit or cost actually caused by, or expected to follow, a financial

2. Law: Evidence or fact logically connected to or helpful in proving a material point.

Completeness - The accomplishment of a given task measured against preset known

Comprehensiveness - completeness over a broad scope

1. General: Characteristic of a resource that is committable, operable, or usable upon

2. Computing: Percentage of time a computer system is available for use. Formula:

3. Quality control: Ability of an item to perform its designated function, whenever

3. Ease of contact with a person or organization.

4. Authorization, opportunity, or right to access records or retrieve information from an

Uniqueness - having no like or equal; unparalleled; incomparable

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