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FIN2210: Probability for Finance (金融概率论): Home

Course Description

This is a finance elective course for those who wish to gain a solid understanding of probability.

本课程旨在通过结合金融案例,帮助我们打下坚实的概率论基础。

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Probability and Statistics for Economists

Probability and Statistics have been widely used in various fields of science, including economics. Like advanced calculus and linear algebra, probability and statistics are indispensable mathematical tools in economics. Statistical inference in economics, namely econometric analysis, plays a crucial methodological role in modern economics, particularly in empirical studies in economics.This textbook covers probability theory and statistical theory in a coherent framework that will be useful in graduate studies in economics, statistics and related fields. As a most important feature, this textbook emphasizes intuition, explanations and applications of probability and statistics from an economic perspective.

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Learning Outcomes

  • Rigorously define state space, probability measure and random variable.
  • Thoroughly understand the distribution functions (CDF, PMF, PDF).
  • Understand multivariate distribution functions.
  • Know the commonly used distributions and where to apply them.
  • Calculate the moments of a distribution.
  • Transform a single or a list of random variables.
  • Understand basic sampling theories.
  • Understand the convergence and limiting distribution.
  • Use data to estimate the parameter of a probability model.
  • Understand the concepts of hypothesis tests and know how to apply them.