Central limit theorem and Payment service provider: Difference between pages

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imported>Doug Williamson
(Identify context as financial maths & link with Normal distribution page.)
 
imported>Doug Williamson
(Link with e-commerce page.)
 
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''Financial maths.''
''Payment systems''


The central limit theorem states formally that the average of a large number of independent identically distributed random variables will have a normal distribution.
(PSP).


The central limit theorem is important in sampling theory.  It explains that sample means follow a normal distribution - regardless of the actual distribution of the parent population - and that the sample mean is an unbiased estimate of the parent population mean.
1.


The central limit theorem also explains why larger samples will - on average - produce better estimates of the parent population mean.
Defined broadly, a payment service provider is an organisation that:
*provides payment services to others that are not participants in a payment system
*for the purposes of enabling the transfer of funds using the payment system.


The central limit theorem is sometimes known as the '' law of large numbers''.
 
2.
 
In a narrower sense, an online payment service provider (PSP) enables e-commerce merchants to accept payments on the merchant's own website.




== See also ==
== See also ==
* [[Mean]]
*[[Aggregator]]
* [[Normal distribution]]
*[[e-commerce]]
* [[Sample]]
*[[Faster Payments Service]]
* [[Sampling]]
*[[Fintech]]
 
*[[Information technology]]
[[Category:Identify_and_assess_risks]]
*[[P2P]]
*[[Payment system]]
*[[TTP]]

Revision as of 11:01, 18 March 2017

Payment systems

(PSP).

1.

Defined broadly, a payment service provider is an organisation that:

  • provides payment services to others that are not participants in a payment system
  • for the purposes of enabling the transfer of funds using the payment system.


2.

In a narrower sense, an online payment service provider (PSP) enables e-commerce merchants to accept payments on the merchant's own website.


See also