Amortization: Difference between revisions

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Amortization has a few different meanings within finance, and one in computing.
They all relate to cost over time in some way.
In accounting, amortization refers to occasionaly lowering the book value of a loan (or such)
because you are writing off a cost over a period.{{verify}}
[[Computational_complexity_theory_notes#Worst,_average_and_best_case;_amortized_analysis|In computational complexity theory, amortization]]
roughly means "based on an analysis of howmany operations it will ''really'' need, rather than back-of-napkin extrapolation.
Amortized analysis would say "well let's take the average over a lot of work".
When it would give a different answer to worst-case analysis or average-case analysis, it is usually interesting to know why.
...which exists in part because things like "Oh it's probably O(n<sup>2</sup>)" can easily be too ''pessimistic'' because it's worst-casing.
Consider a dynamic array: an array within an allocated block, and whenever it's full you allocate an array twice its size and copy things there.
Worst case analysis would point out that if you want hard guarantees, then you should assume the worst case. Which is O(n).
Yet the larger it grows, the more that ''most'' insertions will actually be O(1).
You might want the generic answer to be O(n) because .
In fact that doubling-the-size almost even partially offsets the "we don't care about the details, we only care know the way it grows so we can select the one that scales best"
But in an everyday sense, this is an example where this implementation might be fundamentally and noticeably faster than
a really dumb dynamic array implementation (such as reallocating each insert).




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Latest revision as of 13:15, 28 April 2024

This article/section is a stub — some half-sorted notes, not necessarily checked, not necessarily correct. Feel free to ignore, or tell me about it.