This course introduces statistic analysis tools to be used as a basis for developing finance theory. Various statistics models widely used in the financial industry for will be presented. Topics include probabilistic background, point and interval estimation, sample spaces, random variables, independence, discrete and continuous distributions, expectation, correlation, moment generating function, distributions of function of random variables, law of large numbers and limit theorems, sampling theory, order statistics, limiting distributions, point estimation, confidence intervals, hypothesis testing, non-parametric methods, data analysis and implementation of statistical tools in a statistical computational package.

This one-semester course aims to provide students with a solid training in the principles and procedures of statistical theories, which are important for making business decisions. The objectives are therefore to give students statistical knowledge and techniques to analyze and solve real world business problems and to introduce the basic concepts of probability as well as the mathematics of probability theories. The emphasis here is on developing students’ ability to effectively choose the correct statistical techniques and communicate statistical data and results of analysis.