# Introduction to Probability and Statistics for Science, Engineering, and Finance

PDF

- eBook:Introduction to Probability and Statistics for Science, Engineering, and Finance
- Author:Walter A. Rosenkrantz
- Edition:1 edition
- Categories:
- Data:July 10, 2008
- ISBN:1584888121
- Language:English
- Pages:680 pages
- Format:PDF

**Book Description**

## Introduction to Probability and Statistics for Science, Engineering, and Finance *by Walter A. Rosenkrantz*

**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

**Content**

2. Probability Theory

3. Discrete Random Variables and Their Distribution Functions

4. Continuous Random Variables and Their Distribution Functions

5. Multivariate Probability Distributions

6. Sampling Distribution Theory

7. Point and Interval Estimation

8. Hypothesis Testing

9. Statistical Analysis of Categorical Data

10. Linear Regression and Correlation

11. Multiple Linear Regression

12. Single Factor Experiments: Analysis of Variance

13. Design and Analysis of Multi-Factor Experiments

14. Statistical Quality Control