Introduction to Probability and Statistics for Science, Engineering, and Finance - Hardcover

Rosenkrantz, Walter A.

Hardcover

ISBN 10: 1584888121 ISBN 13: 9781584888123

Publisher: Chapman and Hall/CRC, 2008

Synopsis

Integrating interesting and widely used concepts of financial engineering into traditional statistics courses, Introduction to Probability and Statistics for Science, Engineering, and Finance illustrates the role and scope of statistics and probability in various fields.

The text first introduces the basics needed to understand and create tables and graphs produced by standard statistical software packages, such as Minitab, SAS, and JMP. It then takes students through the traditional topics of a first course in statistics. Novel features include:

Applications of standard statistical concepts and methods to the analysis and interpretation of financial data, such as risks and returns

Cox–Ross–Rubinstein (CRR) model, also called the binomial lattice model, of stock price fluctuations

An application of the central limit theorem to the CRR model that yields the lognormal distribution for stock prices and the famous Black–Scholes option pricing formula

An introduction to modern portfolio theory

Mean-standard deviation diagram of a collection of portfolios

Computing a stock’s betavia simple linear regression

As soon as he develops the statistical concepts, the author presents applications to engineering, such as queuing theory, reliability theory, and acceptance sampling; computer science; public health; and finance. Using both statistical software packages and scientific calculators, he reinforces fundamental concepts with numerous examples.

About this title

Synopsis

Through an integrated approach, "Introduction to Probability and Statistics for Science, Engineering, and Finance" presents the traditional concepts of data analysis, probability theory, and statistical inference along with various novel applications in financial mathematics and engineering. The text covers distribution functions, linear regression, and both single- and multi-factor experiments. Focusing on random samples drawn from a population, it clarifies the link between probability theory and statistical inference by discussing the use of statistical software packages in numerous examples. In addition, the datasets on an accompanying CD-ROM illustrate the scope of statistics in science and engineering.

Edition details

• Publisher: Chapman and Hall/CRC
• Publication date: 2008
• ISBN 10: 1584888121
• ISBN 13: 9781584888123
• Binding: Hardcover
• Language: English
• Edition number: 1
• Number of pages: 680