This course presents
a review of the mathematical models
necessary to conduct research in finance
and financial risk management and to
use a variety of quantitative methods
to analyze data and make decisions. It
starts with an appraisal of some relevant
mathematical and statistical concepts
including probability (discrete, continuous,
marginal, conditional, joint, etc.) and
probability distribution (normal, binomial,
Poisson, and exponential). Sampling and
sampling distributions, confidence interval
estimation, and hypothesis testing will be
covered and applied to real finance cases.
Then, regression analysis and statistical
inferences together with the time series
and forecasting analyses will be conducted.
The ultimate objective of the course is to lead students to describe large complex
data sets, run regression analyses, make
quantitative forecasts, create optimization
models, and run simulations.