Problems And Solutions in Probability

By Eric Chin, Dian Nel, Sverrir Ólafsson
Detailed guidance on the mathematics behind equity derivatives

It is not so very long ago that up-to-date text-books on statistics were almost non-existent. In the last few decades this deficiency has largely been remedied, but in order to cope with a broad and rapidly expanding subject many of these books have been fairly big and expensive. The success of Methuen's existing series of monographs, in physics or in biology, for example, stresses the value of short inexpensive treatments to which a student can turn for an introduc­ tion to, or a revision of, specialised topics. In this new Methuen series the still-growing importance of prob­ ability theory in its applied aspects has been recognised by coupling together Probability and Statistics; and included in the series are some of the newer applications of probability theory to stochastic models in various fields, storage and service problems, 'Monte Carlo' techniques, etc. , as well as monographs on particular statistical topics.

Statistics is often regarded as a boring, and therefore difficult, subject particularly by those whose previous experience has not produced any real need to understand variation and to make appropriate allowances for it. The subject can certainly be presented in a boring way and in much advanced work can be conceptually and mathematically very difficult indeed.

Originally published in 1986, this volume consists of 100 problems in probability and statistics, together with solutions and extensive notes on the solutions. The notes are designed to enable the reader to discover relationships between various statistical techniques…