Mathematics of Uncertainty.
FE 507 Mathematics of Uncertainty (Belirsizligin Matematigi) (3+0+0) 3 ECTS 9 Random variables, expectations and variance, Binomial, Poisson and Normal Distributions, Law of Large Numbers. Methods of data analysis, univariate and multi-variate models, estimation, confidence intervals, hypothesis testing problems, analysis of variance, regression and correlation analysis, goodness of fit tests, maximum likelihood estimation. Central Limit Theorems, generating and characteristic functions, moments, conditional probabilities; Markov Chains, random walks as martingales, discrete to continuous stochastic processes, binomial model of stock prices, Arbitrage Pricing Theory, pricing of a European Call Option, Black-Scholes equation.
Instructor(s):
Introduction series