meaning and definition of interpolation
Answers
Answer:
Interpolation is a statistical method by which related known values are used to estimate an unknown price or potential yield of a security.
Answer:
In the mathematical field of numerical analysis, interpolation is a type of estimation, a method of constructing (finding) new data points based on the range of a discrete set of known data points.
In engineering and science, one often has many data points, obtained by sampling or experimentation, which represent the values of a function for a limited number of values of the independent variable. It is often required to interpolate; that is, estimate the value of that function for an intermediate value of the independent variable.
A closely related problem is the approximation of a complicated function by a simple function. Suppose the formula for some given function is known, but too complicated to evaluate efficiently. A few data points from the original function can be interpolated to produce a simpler function that is still fairly close to the original. The resulting gain in simplicity may outweigh the loss from interpolation error and give better performance in the calculation process.