However, a terminological difference arises in the expression mean squared error (MSE). The mean squared error of a regression is a number computed from the sum of squares of the computed residuals, and not of the unobservable errors. If that sum of squares is divided by n, the number of observations, the result is the mean of the squared residuals.
Heisenberg Uncertainty Principle. Heisenberg, a German scientist stated the principle of uncertainty which is a consequence of dual nature of matter and waves. The Heisenberg uncertainty principle states that it is impossible to find the position and momentum (velocity) of an electron at the same moment. Mathematical representation of this is as follows: \( \triangle x Ã \triangle v_x \geq \frac{h}{4\pi m}\)
Uncertainty is a situation regarding a variable in which neither its probability distribution nor its mode of occurrence is known. For instance, an oligopolist may be uncertain with respect to the marketÂ­ing strategies of his competitors. Uncertainty as defined in this way is extremely common in economic activity. The function of the entrepreneur is to meet those risks which are non-insurable and which are called uncertainties.