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Income Methodology For Income Analysis
Income Methodology For Income Analysis
Definition: Suppose 𝑓𝜖∁1 [𝑎, 𝑏]. Let the Income 𝐼0 , … , 𝐼𝑛 be distinct numbers in [𝑎, 𝑏]
However, since the range of the grouped frequencies are not uniform, we must map
𝑓(𝐼) → 𝜔(𝐼):
m
𝜔 = 𝑓(𝐼𝑖 ) ( ) 𝑤ℎ𝑒𝑟𝑒, m = min(𝑅)
𝑅𝑖
Definition: Now suppose 𝜔𝜖∁1 [𝑎, 𝑏]. Let the Income 𝐼0 , … , 𝐼𝑛 be distinct numbers in [𝑎, 𝑏],
such that the Hermite polynomial 𝑃(𝐼) and approximates 𝜔.
Theorem: if 𝜔 𝜔𝜖∁1 [𝑎, 𝑏] and partitioned into 𝑁 Intervals 𝐼0 , … , 𝐼𝑛 𝜖[𝑎, 𝑏] district numbers
the Hermite polynomial is:
𝑁 𝑁
̂𝑛,𝑗 (𝐼)
𝐻2𝑛+1 (𝐼) = ∑ 𝜔(𝐼𝑗 ) 𝐻𝑛,𝑗 (𝐼) + ∑ 𝜔′(𝐼𝑗 ) 𝐻
𝑗=0 𝑗=0