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
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
Knowledge and Understanding
Having successfully completed this module, you will be able to demonstrate knowledge and understanding of:
- basic probability theory, through sampling, distributions, hypothesis testing and interpretation.
- how to analyse financial data
- the importance and use of a normal distribution
- the key differences between correlation and causation
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
Syllabus
Probability
Discrete and random variables
Probability distributions
The normal distribution
Hypothesis testing
Graphical analysis
Correlation
Simple regression
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
Type | Hours |
---|---|
Wider reading or practice | 30 |
Tutorial | 10 |
Lecture | 24 |
Follow-up work | 26 |
Revision | 50 |
Preparation for scheduled sessions | 10 |
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.
Method | Percentage contribution |
---|---|
Examination | 30% |
Examination | 70% |
Referral
This is how we’ll assess you if you don’t meet the criteria to pass this module.
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.
Method | Percentage contribution |
---|---|
Examination | 100% |
Repeat Information
Repeat type: Internal & External