Probability and Statistics by Example

Probability and Statistics are as much about intuition and problem solving as they are about theorem proving. Because of this, students can find it very difficult to make a successful transition from lectures to examinations to practice, since the problems involved can vary so much in nature. Since the subject is critical in many modern applications such as mathematical finance, quantitative management, telecommunications, signal processing, bioinformatics, as well as traditional ones such as insurance, social science and engineering, the authors have rectified deficiencies in traditional lecture-based methods by collecting together a wealth of exercises with complete solutions, adapted to needs and skills of students. Following on from the success of Probability and Statistics by Example: Basic Probability and Statistics, the authors here concentrate on random processes, particularly Markov processes, emphasizing models rather than general constructions. Basic mathematical facts are supplied as and when they are needed and historical information is sprinkled throughout.

• Enables readers to develop effective techniques for learning about and developing a deeper understanding of probability and statistics
• Contains a substantial number of Cambridge exam questions, and solutions to help students prepare for examinations
• Will also aid students from other disciplines such as engineering and social sciences - and those who need a background in random processes for careers in finance, insurance, actuarial studies and economics