Statistical Methods for Finance

Module overview

Statistical Methods for Finance is a critical module for you to learn basics for future modules on Econometrics, as well as their final year dissertation. This module covers important topics such as probability, discrete and random variables, Probability distributions, normal distribution, hypothesis testing, graphical analysis, correlation and simple regression. Lectures are followed by in-depth practical examples using tools that show the real world implications.

Aims and Objectives

Learning Outcomes

Knowledge and Understanding

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

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

Transferable and Generic Skills

Having successfully completed this module you will be able to:

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

Subject Specific Intellectual and Research Skills

Having successfully completed this module you will be able to:

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

Learning and Teaching

Teaching and learning methods

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

Study time
Type	Hours
Preparation for scheduled sessions	10
Tutorial	10
Wider reading or practice	30
Revision	50
Lecture	24
Follow-up work	26
Total study time	150

Resources & Reading list

Textbooks

Newbold, Paul Carlson, William L (2013). Statistics for business and economics. Pearson Education.

Koop, Gary. Analysis of economic data. 2013: Wiley.

Assessment

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.

Breakdown
Method	Percentage contribution
Examination	70%
Examination	30%

Referral

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

Breakdown
Method	Percentage contribution
Examination	100%

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.

Breakdown
Method	Percentage contribution
Examination	100%

Repeat Information

Repeat type: Internal & External