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

Integrating interesting and widely used concepts of financial engineering into traditional statistics courses, this introduction illustrates the role and scope of statistics and probability in various fields. Linking probability theory with statistical inference, it presents many application examples from engineering, computer performance analysis, public health, and finance. The text provides technical details for the derivation of various theorems, including the famous Black–Scholes option pricing formula, contains over 650 exercises, and offers a solutions manual for qualifying instructors. It also includes a CD-ROM with all of the data sets used in the book.