Postgraduate Course: Statistics For Finance (CMSE11086)
||College||College of Humanities and Social Science
|Credit level (Normal year taken)||SCQF Level 11 (Postgraduate)
||Availability||Not available to visiting students
|Summary||This course will provide you with the statistical concepts needed for financial applications. The goal is to apply statistical tools to analyse data, solve problems and make business decisions. This introductory course will provide you with the essential background for subsequent courses.
The content of this course is similar to an advanced undergraduates statistics course. Although there is a strong emphasis on theory, you will get an introduction to an econometric software for conducting basic empirical research. The material is presented to understand, rather than memorise, statistical concepts. The course shall be accessible for both, students with strong quantitative background, and those who are ready to put effort into the class material.
Data: Plots and Summaries
Introduction to Probability
Statistical Inference: Confidence Intervals, Hypothesis Tests, and p-values
The Simple Linear Regression Model
The Multiple Linear Regression Model
Student Learning Experience
The lectures will combine both theory and empirical examples. Additional examples will be solved at tutorials and extra exercises will also be available before the mid-term exam and the final exam. Students' real learning involves more than attending lectures. Students need to reflect on their learning and solve tutorial problems (in advance of tutorials) to learn best.
Entry Requirements (not applicable to Visiting Students)
||Other requirements|| For Business School PG students only, or by special permission of the School. Please contact the course secretary.
Course Delivery Information
|Academic year 2018/19, Available to all students (SV1)
|Learning and Teaching activities (Further Info)
Lecture Hours 20,
Seminar/Tutorial Hours 14.5,
Feedback/Feedforward Hours 1,
Summative Assessment Hours 4,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
|Assessment (Further Info)
|Additional Information (Assessment)
||Mid-term class test (multiple choice): 30%
Final exam: 65%
Class project: 5%
||Students will get feedback in the tutorials. Marks for the mid-term class test will be provided to enable students to know how they are performing. The solutions for the mid-term will be discussed in a separate session. Students will also get general feedback on the final exam performance.
||Hours & Minutes
|Main Exam Diet S1 (December)||Statistics For Finance||2:00|
On completion of this course, the student will be able to:
- Define, explain and illustrate the concepts of probability, random variables, point estimation, interval estimation, hypothesis testing and inference.
- Critically discuss the link of theory with empirical applications.
- Understand and critically evaluate the importance of assumptions in statistics/econometrics.
- Carry out basic data analysis in STATA (students from the MSc in Banking and Risk Management will carry out regression analysis in SAS)
|Douglas A. Lind, William G Marchal, Samuel A. Wathen (2012), Statistical Techniques in Business and Economics, 15th Edition, McGraw-Hill|
Wooldridge, J. (2015), Introductory Econometrics: A Modern Approach, 6th edition, Thomson.
Wooldridge, J. (2013), Introduction to Econometrics: Europe, Middle East and Africa Edition, Cengage Learning.
Although the main text of the course is Statistical Techniques in Business and Economics, Introductory Econometrics is an excellent reference for regression analysis and an invaluable text for carrying out econometric applications and writing down your dissertation. This is the main text for Research Methods (compulsory course for some master programmes in semester 2). Please note that both books by Wooldridge are pratically the same textbook but the European version is less expensive.
Resource List: https://eu01.alma.exlibrisgroup.com/leganto/public/44UOE_INST/lists/18387440020002466?auth=SAML
|Graduate Attributes and Skills
The course will develop analytical, numerical and problem-solving skills.
Subject Specific Skills:
Students will gain an ability to understand and use statistics notation and theory to solve a wide range of problems in Finance.
|Additional Class Delivery Information
||The course consists of ten two hour lectures plus weekly tutorials.
|Course organiser||Dr Angelica Gonzalez
Tel: (0131 6)51 3027
|Course secretary||Mrs Kelly-Ann De Wet
Tel: (0131 6)50 8071