16

Basic statistics

Methods

Descriptive statistics

Probability distributions

Sampling/Central Limit Theorem

Hypothesis testing

Correlation and regression

LINEST function

Exercise

Summary

 

File: MFMaths3e_16a.xls, MFMaths3e_16b.xls

METHODS

Statistics deals with collecting, analysing, interpreting and presenting numerical data. The purpose of this chapter is to introduce some mathematical techniques for analysing and understanding data useful in finance. While these methods are time consuming with a financial calculator, Excel provides a set of functions and wizards for analysing data sets quickly. For example, you may wish to assess measures of dispersion from sets of historical data so that you can make forecasts or infer outcomes for the future. ...

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