Statistical Methods for Finance

Learning Outcomes

Knowledge and Understanding

Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:

• the key differences between correlation and causation
• how to analyse financial data
• basic probability theory, through sampling, distributions, hypothesis testing and interpretation.
• the importance and use of a normal distribution

Transferable and Generic Skills

Having successfully completed this module you will be able to:

• Demonstrate competence generally in numerical analysis and problem solving
• Apply numeracy and quantitative analysis skills

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

• to conduct probability tests under various situations and value assets
• to perform hypothesis testing using a normal distribution

Probability

Discrete and random variables

Probability distributions

The normal distribution

Hypothesis testing

Graphical analysis

Correlation

Simple regression

Weekly lectures will provide an overview of the main issues arising in the module.

Weekly classes will supplement the lectures which will support student learning by providing opportunities for students to attempt, and gain feedback on, numerical and problem-solving exercises. Students will also have the opportunity for both directed and non-directed independent reading

Formative

This is how we’ll give you feedback as you are learning. It is not a formal test or exam.

In-class activities

• Assessment Type: Formative
• Feedback: Feedback from in-class activities will be provided in the classes and further feedback can be sought from the module leader during their office hours.
• Final Assessment: No
• Group Work: No

Summative

This is how we’ll formally assess what you have learned in this module.

Referral

This is how we’ll assess you if you don’t meet the criteria to pass this module.

Repeat

An internal repeat is where you take all of your modules again, including any you passed. An external repeat is where you only re-take the modules you failed.