By Islam BarakaDefinitions
In plain terms
An inlier supports the candidate line under the chosen residual rule.
Technical
Pivot i is an inlier when |log(p_i)-z_hat_i(h)| <= epsilon_log, with equality included.
Scope
Inlier status depends on the candidate, tolerance, and selected price basis.
Formula
inlier when absolute log residual is no greater than the tolerance|z_i-\widehat z_i(h)|\le\epsilon_{log}| Symbol | Meaning | Unit |
|---|---|---|
epsilon_log | log residual tolerance | log-price |
Output unit: boolean state
Examples
- A reviewer computes Consensus Inlier on a small deterministic fixture and checks timing, units, and boundary behavior before publication.
Common misconceptions
- Inlier status depends on the candidate, tolerance, and selected price basis.
Concept relationships
Where this concept is used
Tutorials planned
These catalogued topics use this concept, but their complete build has not shipped yet.
- D08-F01-A04 Important
Evidence and governance
- sklearn.linear_model.RANSACRegressor scikit-learn · first party technical publication
Supports: preferred label, short definition, technical definition, formula
Limits: This package enumerates every two-point hypothesis for small pivot sets instead of using random sampling.
- Linear Least Squares Regression NIST/SEMATECH · official standard
Supports: preferred label, short definition, technical definition, formula
Limits: A fitted line remains descriptive and is not evidence of a future price path.
- numpy.log NumPy · first party technical publication
Supports: preferred label, short definition, technical definition, formula
Limits: A log transform requires positive finite prices and does not by itself define a financial level.
- numpy.polyfit NumPy · first party technical publication
Supports: preferred label, short definition, technical definition, formula
Limits: The glossary freezes its own log-space OLS contract, diagnostics, and tie rules.
- Reviewed by
- fintech-builder-batch-011
- Last reviewed
- 2026-08-09
- Next review
- 2027-08-09
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.