In an easy-to-understand, nontechnical yet mathematically elegant manner, An Introduction to Exotic Option Pricing shows how to price exotic options, including complex ones, without performing complicated integrations or formally solving partial differential equations (PDEs). The author incorporates much of his own unpublished work, including ideas

"Human beings are a superstitious lot; we see patterns everywhere. But as Hand makes clear in this enlightening book, it all comes down to the math." —Jennifer Ouellette, The New York Times Book ReviewA Success Magazine Best Book of the YearIn The Improbability Principle, the renowned statistician David J. Hand argues that extraordinarily rare events are anythi...

APPROACHES TO QUANTITATIVE RESEARCH is designed for both undergraduate and postgraduate business students who are planning to undertake a research project or dissertation. Due to a lack of formal research training and experience, students can find completing research projects a daunting task. This, coupled with a fear of statistics, can culminate in quite an overwhelming experience for many students. Therefore, APPROACHES TO QUANTITATIVE RESEARCH takes a practical approach to quantitative ...

This book focuses specifically on the key results in stochastic processes that have become essential for finance practitioners to understand. The authors study the Wiener process and Itô integrals in some detail, with a focus on results needed for the Black–Scholes option pricing model. After developing the required martingale properties of this process, the construction of the integral and the Itô formula (proved in detail) become the centrepiece, both for theory and applications, and to ...

From the medicine we take, the treatments we receive, the aptitude and psychometric tests given by employers, the cars we drive, the clothes we wear to even the beer we drink, statistics have given shape to the world we inhabit. For the media, statistics are routinely 'damning', 'horrifying', or, occasionally, 'encouraging'. Yet, for all their ubiquity, most of us really don't know what to make of statistics. Exploring the history, mathematics, philosophy and practical use of statistics, E...

Teacher tenure is a problem. Teacher tenure is a solution. Fracking is safe. Fracking causes earthquakes. Our kids are over-tested. Our kids are not tested enough. We read claims like these in the newspaper every day, often with no justification other than 'it feels right'. How can we figure out what is right? Escaping from the clutches of truthiness begins with one simple question: 'what is the evidence?' With his usual verve and flair, Howard Wainer shows how the sceptical mindset of a d...

Focusing on what actuaries need in practice, this introductory account provides readers with essential tools for handling complex problems and explains how simulation models can be created, used and re-used (with modifications) in related situations. The book begins by outlining the basic tools of modelling and simulation, including a discussion of the Monte Carlo method and its use. Part II deals with general insurance and Part III with life insurance and financial risk. Algorithms that c...

Essential Statistical Methods for Medical Statistics presents only key contributions which have been selected from the volume in the Handbook of Statistics: Medical Statistics, Volume 27 (2009). While the use of statistics in these fields has a long and rich history, the explosive growth of science in general, and of clinical and epidemiological sciences in particular, has led to the development of new methods and innovative adaptations of standard methods. This volume is appropriately foc...

A Hands-On Approach to Understanding and Using Actuarial ModelsComputational Actuarial Science with R provides an introduction to the computational aspects of actuarial science. Using simple R code, the book helps you understand the algorithms involved in actuarial computations. It also covers more advanced topics, such as parallel computing and C/

This book provides an introduction to the use of statistical concepts and methods to model and analyze financial data. The ten chapters of the book fall naturally into three sections. Chapters 1 to 3 cover some basic concepts of finance, focusing on the properties of returns on an asset. Chapters 4 through 6 cover aspects of portfolio theory and the methods of estimation needed to implement that theory. The remainder of the book, Chapters 7 through 10, discusses several models for financia...

The Essentials of Data Science: Knowledge Discovery Using R presents the concepts of data science through a hands-on approach using free and open source software. It systematically drives an accessible journey through data analysis and machine learning to discover and share knowledge from data.Building on over thirty years’ experience in teaching and practising data science, the author encourages a programming-by-example approach to ensure students and practitioners attune to the p...

Do you need to gain confidence with handling numbers and formulae? Do you want a clear, step-by-step guide to the key concepts and principles of statistics? Nearly all aspects of our lives can be subject to statistical analysis. Statistics: An Introduction shows you how to interpret, analyze and present figures.Assuming minimal knowledge of maths and using examples from a wide variety of everyday contexts, this book makes often complex concepts and techniques easy to get t...