By Islam BarakaDefinitions
In plain terms
It gives the selected inlier set a final intercept and slope.
Technical
Estimate (a*,b*) from the locked {(t_i, log p_i)} set using the ordinary least-squares closed form or equivalent stable implementation.
Scope
OLS is sensitive to outliers, which is why it is applied after consensus selection here.
Formula
fit a and b by ordinary least squares over the locked inlier set(a^*,b^*)=\operatorname{OLS}\{(t_i,\log p_i):i\in I(h^*)\}| Symbol | Meaning | Unit |
|---|---|---|
I(h*) | locked inlier set | set |
Output unit: model
Examples
- A reviewer computes Log-Price OLS Refit on a small deterministic fixture and checks timing, units, and boundary behavior before publication.
Common misconceptions
- OLS is sensitive to outliers, which is why it is applied after consensus selection here.
Concept relationships
Where this concept is used
Evidence and governance
- 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.
- 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.
- 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.